Economic matters should transcend political divides: Nirmala Sitharaman

BS Manthan: Union Finance Minister Nirmala Sitharaman described the ongoing global turbulence as a "splashing" of forces, urging India to actively participate rather than remain a bystander

Union Finance Minister Nirmala Sitharaman on Thursday underscored the need for transparent and cooperative dialogue with states to strengthen India’s economic framework. She made the remarks during a fireside chat at the first day of BS Manthan summit.

 

“There should be an honest engagement with the states. You think an institutional arrangement would get you the desired result. But even in setting up the GST council, the efforts were intensive and continuous. I think the engagement with states must happen first," Sitharaman said. 

 

"Like the gender question should not be politicised. Any effort to misinform the public about how money or tax devolution happens, is a disservice to the nation,” she added, underscoring the importance of clarity and collaboration. 

 

 

The Finance Minister further cautioned against misinformation, noting, “Debt is a burden on future generations. Any attempt to misinform is a disservice to the nation.”

 

Responding to queries about whether an institutional framework could address fiscal disparities among states, Sitharaman said that while structures like the GST Council required sustained effort, the foundation must be rooted in genuine state-level engagement.

   

 

 

Sitharaman on India's growth drivers

 

Sitharaman also tackled questions on economic policy and growth drivers. Asked if additional policy measures were needed to address structural issues, she responded, “Not at this stage. Reform measures we announced have some way to go. We need to move quickly after the Income Tax Bill is approved. We have to, after April 1, start moving at a quick pace.” 

 

She, however, highlighted ongoing reforms in export promotion, taxpayer respect, income tax simplification, and customs duties, expressing confidence in their rollout.

 

On the notion of India’s “growth story” becoming normalised, Sitharaman acknowledged a possible stabilisation in the current quarter but rejected it as an endpoint. “Against all the challenges globally, India is moving ahead with growth,” she affirmed, signalling resilience amid international headwinds.   Follow LIVE updates on BS Manthan here: BS Manthan LIVE updates

 

When pressed on the corporate sector’s role in investment revival, she shifted the onus to industry leaders: “The answer has to be heard from the industry. Tell us why not if you are not doing [investment], tell us if you are. But why not answer?”

 

Addressing customs tariff rationalisation, Sitharaman described it as a “continuous exercise” aimed at enabling manufacturing. “We want certain products coming into India because manufacturing depends on it... We will be enabling the products coming into the country if it helps our manufacturing,” she explained. 

 

On disinvestment and privatisation, Sitharaman noted that since 2021, core sectors have been opened to private participation, with no barriers to entry across domains.

 

Sitharaman also outlined deregulation efforts since 2019, including the removal of approximately 1,600 archaic laws and streamlining overlapping regulations. “We wanted to clean it up so that everyone works as part of a larger wheel than spokes for themselves,” she said, stressing coordination among regulators, particularly in the financial sector.