Sitharaman Says 7.8% Q1 Growth Shows India’s Economic Resilience

Union Finance Minister Nirmala Sitharaman has said India’s 7.8% economic growth in the first quarter of FY2026-27 demonstrates the country’s resilience amid global economic turbulence and persistent uncertainty.

Addressing investors in New York on Thursday, Sitharaman said India continued to be the fastest-growing major economy despite global disruptions and challenging external conditions.

Before the address, the finance minister participated in a high-level business roundtable with investors organised by the Consulate General of India in New York in association with Bank of America, New York.

“Despite global disruptions and against all odds, India continues to be the fastest-growing major economy in the world, recording a remarkable growth of 7.8 per cent in Q1 of FY2026-27,” Sitharaman said in a post on X.

Highlighting the government’s reform agenda, she said a range of measures had helped provide greater regulatory certainty and improve the ease of doing business. She cited reforms such as the Insolvency and Bankruptcy Code, which, she said, had contributed to easing compliance requirements and reducing paperwork.

According to Sitharaman, improving the business environment has remained a key focus of the government since it assumed office more than a decade ago.

She also outlined several areas that have received sustained government attention, including the creation of capital assets, infrastructure development and support for industry. Aviation infrastructure, development of artificial intelligence and data centres, promotion of global capability centres, improved credit availability for micro, small and medium enterprises (MSMEs), and reduction of non-performing assets (NPAs) in the banking sector were among the key priorities she highlighted.

“These measures have helped create a more enabling business environment for banks and industry to thrive, grow and emerge stronger,” she said.

The finance minister also stressed that India has maintained its commitment to fiscal prudence and discipline over the past several years despite the challenges facing the global economy since the onset of the Covid-19 pandemic.

Sitharaman said India’s investment climate had improved significantly, with both the central and state governments becoming more proactive and competitive in attracting and facilitating investments.

She said these efforts were part of the country’s broader national objective of achieving the vision of Viksit Bharat 2047.