Guwahati: India is expected to maintain economic growth of 7 per cent or higher in 2026-27 (FY27), continuing the pace recorded in the years following the Covid-19 pandemic, Union Finance Minister Nirmala Sitharaman said on Sunday.
Addressing the Indian diaspora in Chicago, United States, Sitharaman said India had consistently recorded growth of 7 per cent or more since the pandemic and was likely to maintain a similar pace in the current financial year.
She said India was expected to remain resilient despite geopolitical uncertainties and supply-chain disruptions triggered by the US-Iran conflict and the closure of the Strait of Hormuz.
Sitharaman said disruptions in the strategic waterway had initially affected India’s supplies of petroleum products, natural gas and fertilisers. However, the country was able to reroute supplies and minimise the impact, she said.
The government has also kept fertiliser prices unchanged for farmers through subsidies despite a significant increase in international prices, according to the finance minister. She said adequate fertiliser stocks were available ahead of the upcoming season beginning in November.
Sitharaman said the government would continue pursuing structural reforms while working to mobilise greater amounts of capital, particularly from international sources, as the Indian economy expands.
She noted that private investment in India had gained momentum following the government’s increased focus on capital expenditure. However, the country’s growing capital requirements made it necessary to attract more foreign investment, she said.
The finance minister said the government, along with other ministers and Prime Minister Narendra Modi, was engaging with global investment funds to showcase India’s economic progress and understand their expectations.
India’s economy contracted by 5.8 per cent in FY21 during the Covid-19 pandemic but has since recorded growth of more than 7 per cent in each of the following five years.
For FY27, the Economic Survey for FY26 projected economic growth between 6.8 per cent and 7.2 per cent, while the Reserve Bank of India (RBI) has estimated GDP growth at 6.7 per cent.
The Ministry of Statistics and Programme Implementation is scheduled to release India’s GDP growth data for the June quarter on Monday.
Meanwhile, Commerce and Industry Minister Piyush Goyal recently visited Japan as part of efforts to attract investments. He has sought to mobilise investments worth $60 billion by 2035.
Sitharaman said India was also engaging with several countries on bilateral investment treaties and bilateral trade agreements as part of its broader efforts to strengthen economic ties.
The government’s push for overseas investment comes amid a significant decline in net foreign direct investment (FDI) inflows into India in recent years. Net FDI dropped from an annual average of $40 billion between FY20 and FY22 to $6.95 billion in FY26.