Record 8 budgets, bold reforms: How Nirmala Sitharaman became India’s most powerful finance minister

In 2019, when the BJP-led National Democratic Alliance (NDA) came back to power for a second consecutive term, Nirmala Sitharaman became the first full-time woman finance minister almost after five decades of former Prime Minister Indira Gandhi holding the post as additional charge during 1969-70.

With the BJP back in power for a third term in 2024, Sitharaman has made a record of tabling eight consecutive Budgets, surpassing the six presented by former finance minister Morarji Desai between 1959 and 1964. But Sitharaman’s tenure as finance minister transcends the mere tally of the number of Budgets or the longevity of the term. She has managed to establish a distinct identity for the Ministry of Finance—a Ministry that has its ear to the ground and swiftly addresses the needs of the economy based on feedback from stakeholders.

So, whether it is the reduction in the corporate tax rate, or implementation of the Covid stimulus in 2020, or the ongoing consumption blues in the economy, the rule book has been the same—listen to concerns, design requisite policy interventions, and implement them without delay. Even while juggling with one macro inferno after another, the ministry under Sitharaman kept the process of disinvestment—Air India being one of the key achievements—and reforms alive over the past six years, ensuring the country Sitharaman has tabled a record eight consecutive Budgets. remains on course towards its goal of a $5-trillion economy.

Prompt policy action amid emerging macroeconomic situations touching a wide spectrum of stakeholders—corporates, MSMEs, states, and people at large—remained the key reason behind her No. 1 spot in Fortune India’s Most Powerful Women in Business list between 2021 and 2024.

It’s no different this year. Meanwhile, Sitharaman continues to douse the macro conflagrations. Amidst the latest tariff war, the government, according to sources, is working on a support package for ex porters in the wake of U.S. President Donald Trump’s retaliatory tariffs kicking in. Interestingly, immediately after Trump won the race for U.S. presidency after a hyperbolic campaign based on protectionist tariffs to insulate the American economy, the ministry had started studying the duty structure on U.S. imports. Her handling of the finance ministry is all about identifying an incoming issue and offering a solution. The mega tax dole of nil tax on annual income of up to ₹12 lakh has moved 15 million taxpayers out of the tax net and left ₹1 lakh crore as surplus in the hands of the people. The move is expected to boost consumption in the economy.