Union Finance Minister Nirmala Sitharaman on Wednesday said the Indian economy is “moving fast” with “all engines fully functioning,” three weeks after the presentation of the Union Budget while acknowledging global uncertainties and stressing the need to safeguard domestic industry. 

Speaking at a fireside chat at an event, Sitharaman credited the finance ministry for maintaining a realistic assessment of the economy. “I credit the finance ministry for having kept a vigil and being meticulous in the way in which they have drawn inputs and year after year they have been very realistic in giving a picture of our economy,” she said, adding that periodic reports from the Reserve Bank of India (RBI) have not contradicted the government’s assessment. 

“The economy is moving fast, moving well, with all engines fully functioning,” she said. 

Global uncertainties, tariff concerns 

The minister acknowledged that challenges remain, particularly from global uncertainties. “Some challenges we can address successfully. But there are some which are beyond us. That’s why you need to make sure every ammunition is ready to control such situations,” she said, noting that the government had successfully navigated multiple crises over the past five to six years. 

On trade policy, Sitharaman said the government’s goal is to remove the fear of tariff walls but cautioned against harming domestic industry in a rush to compete globally. 

To counter external risks, she said India is moving “at very high energy” to pursue bilateral taxation-related agreements. 

BIT framework tweaked 

On bilateral investment treaties (BITs), the minister said the post-2016 model BIT has been tweaked where necessary. “The world of investment today is going through different priorities. It is not the same for everybody,” she said, adding that Indian companies are also investing in countries with which India does not have BITs. 

“The world is far more dynamic today,” she said. 

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Agriculture, rare earth corridor, privatisation 

Sitharaman said India’s agriculture sector is undergoing significant change and remains critical to national security. “Everything done for agriculture is with the intent that it becomes strong and robust,” she said. 

She added that the idea of a rare earth corridor emerged from discussions at the Finance Ministers’ meeting ahead of the Budget. 

On privatisation, Sitharaman said progress has been substantial since the FY21-22 announcement. “A lot has happened. The announcement has paid adequate rewards and we are moving even more with robustness,” she said, adding that the overall approach remains broadly unchanged but has improved. 

Meanwhile, the finance minister on Monday clarified that the government does not have any road map for further mergers of public sector banks. “I am not familiar with any roadmap… there isn’t one,” Sitharaman said at a media briefing following her customary post-Budget address to the RBI board. 

She said the proposed High-Level Committee on Banking for Viksit Bharat, announced in Budget 2026-27, will examine ways to strengthen the banking sector once its terms of reference are finalised. 

“Bank consolidation was not a subject here, nor was it a subject before the Budget, but the Committee, once appointed, will look into every aspect of how to strengthen Indian banking,” she said.