From sustained economic growth to global south leadership: FM outlines govt’s top priorities

Finance Minister Nirmala Sitharaman has said that maintaining India’s economic growth remains the government’s top policy priority, with a focus on job creation and inclusive development. She added that the country’s economic momentum has largely been driven by sustained public capital expenditure amid global uncertainties.

“Maintaining growth is the topmost priority, which overlaps with creation of jobs,” the finance minister said during a fireside chat with A.K. Bhattacharya at the launch of the book A World in Flux: India’s Economic Priorities, edited by Professor Amita Batra and A.K. Bhattacharya. The book, a festschrift in honour of former Chief Economic Advisor Shankar Acharya, was released on Saturday in the presence of Shyam Saran, President of the India International Centre (IIC), New Delhi.

The finance minister highlighted the government’s push for capital expenditure as a key growth driver. “Public investments have been kept in pace. It has been Hon'ble Prime Minister Shri Narendra Modi’s clear instruction that we have to have capital expenditure grow and grow significantly. I confidently believe that it is one of the primary drivers of sustained economic growth,” she stated.

“Keeping India relevant amidst global challenges and being there in a leadership position and move forward along with other countries. The priority would also be to redefine the voice of the Global South,” she said, adding that giving necessary support to the economy and attending to every aspiring section’s aspirations were equally important.

She also highlighted the shift in global trade dynamics. “It is bilateral trade which is taking priority over multilateral trade. On the bilateral trade front we are moving forward and we have seen bilateral agreements being signed in the last four-five years with Australia, UAE and the UK,” she said. Sitharaman stated that negotiations are progressing well with the United States as well as the European Union.

Yesterday, Union commerce and industry minister Piyush Goyal also said that India is in a very advanced stage of trade negotiations with key global partners, including the United States, the European Union, and Oman. “We are in a very advanced stage of negotiations with Oman, EU, and U.S.,” Goyal said while addressing a press conference on India-U.K. CETA in New Delhi.

“A pact with New Zealand is also expected in the coming months,” Goyal stated, adding that discussions are currently ongoing with Chile and Peru as well.

Emphasising the strategic importance of these deals, the minister noted that each trade negotiation is getting the requisite attention, and that work is progressing in the right direction across all agreements.

Last week, India and the United Kingdom officially signed the long-awaited Comprehensive Economic and Trade Agreement (CETA).