Global value chain faces disruption, reforms driving growth: FM Sitharaman

Finance Minister Nirmala Sitharaman highlights global challenges, stresses infrastructure push, reform measures, and technology-led growth to boost investment and productivity

Don't want to miss the best from Business Standard?

Finance Minister Nirmala Sitharaman on Thursday said the global value chain is going through a “disruptive phase” amid growing global headwinds, adding that global institutions are also “fading,” making the external environment more challenging.

 

Highlighting the government’s focus on infrastructure, Sitharaman said, “Infrastructure creation is the government's main focus; capex increased significantly over the years.” She underlined that sustained capital investment has been a key driver of economic momentum.

 

How are reforms helping India’s growth story?

 

Speaking at an event organised by the State Bank of India (SBI), the Finance Minister pointed out that the government has “taken countless path-breaking reform measures to improve ease of doing business since 2014,” stressing that policy consistency and transparency have encouraged investment. 

Sitharaman said the government has saved over ₹4 trillion through direct benefit transfers (DBT). “250 million people have been pulled out of multi-dimensional poverty in the last decade,” she said.

 

What role does technology play in India’s economic transformation?

 

Emphasising the role of digital infrastructure, the minister said, “Govt emphasises technology-led growth; cost of data declined to ₹10/GB from ₹300/GB in 2014.” She credited the fall in data costs for enabling widespread digital access and innovation.

 

Banking and GST reforms to spur credit and demand

 

On the banking front, Sitharaman said, “India needs a lot of big and world-class banks; work has commenced in this regard.” She urged the banking sector to support growth by expanding credit availability.

 

“Banks must deepen and widen credit flow to productive sectors to promote growth,” she said, adding that the Goods and Services Tax (GST) rate cuts will spur demand and investment.

 

“GST rate cut-driven demand to unleash virtuous investment cycle, speed up growth,” she stated.