India fastest-growing economy for fourth year running: FM Sitharaman

FM highlights 7.4% Q4 GDP growth driven by industry, services and agri; calls for faith in India's abilities and urges reforms to eliminate corruption and ease regulation

Finance Minister (FM) Nirmala Sitharaman on Friday said India has been sustaining its growth momentum to remain the fastest-growing economy for the fourth year running, supported by manufacturing and industrial activity.

 

Her comments came against the backdrop of the release of official data the same day, which showed that the Indian economy grew at an impressive 7.4 per cent rate in the fourth quarter of the financial year 2025-25 (Q4FY25).

 

“In Q4, even as we lived through it, everyone would tell us that Indian industry is not investing, capacities are not widening, not expanding, what would happen? I am glad… India’s industry and manufacturing have also been good during Q4, and Q4 growth alone was 7.4 per cent,” Sitharaman said in Delhi, during the Lakshmipat Singhania-IIM Lucknow National Leadership Awards ceremony.

 

The finance minister said the economy had recovered strongly from the Covid-19 pandemic.

 

“Even as I was coming, people said that immediately after Covid, we were at 9.5 per cent, then subsequently at 9.2 per cent and so on. Yes, when we start from a low base, when you had a lockdown, you had that number. But India is sustaining this growth as the fastest growing economy now for the fourth year continuously without a break,” she added. 

 

She attributed this continued growth to various sectors.

 

“Thanks to the work of our small and medium-large industries, which are coming in and making sure that our manufacturing or service capacity are all intact and agriculture has also sustained us even during COVID and subsequently,” she said. 

 

Sitharaman also highlighted the government’s focus on emerging technologies and long-term investments.

 

“Science and technology related investments have always been the priority in this country and I am glad that PM Modi looks at futuristic science as well and wants to invest in all of them and that is why in the 2021-22 Budget we had come up with the (national) quantum mission,” she said.

 

Sitharaman said she was open to suggestions for removing regulatory hurdles for businesses.

 

“We are at that part of India’s history where it just requires all of us to have confidence in our country’s abilities and belief that we can definitely deliver that goal. How long are we going to say we are a developing country? It’s time for all of us to get out of the suspicion that we have in our minds, will India be able to do, will India be able to reach? Yes, we can,” she said.

 

She said in achieving the goal of becoming a developed nation by 2047, the country needs to come out of the evil of petty corruption.