Union Finance Minister Sitharaman Explains Why the Idea of ‘3rd Largest GDP’ is Conceivable For India | NewsX Exclusive

Nirmala Sitharaman, an Indian economist, politician, and senior leader of the Bharatiya Janata Party (BJP), has served as the Minister of Finance and Minister of Corporate Affairs of the Government of India since 2019. In an exclusive interview with NewsX, Union Minister of Finance Nirmala Sitharaman spoke with Editor-in-Chief Rishabh Gulati.

When questioned whether achieving the goal of becoming the third-largest GDP is feasible despite India’s current ranking of number 5, Sitharaman responded, ‘Absolutely,’ with unwavering confidence. The Finance Minister explains the government’s initiatives and developmental endeavors during the Narendra Modi administration’s 10-year tenure, such as exports and infrastructure development, including roads and transportation, housing, railways, and healthcare.

When Rishabh Gulati inquired about India’s position as the fifth-largest GDP and whether India aims to secure the third spot in the near future, Nirmala replied, “Absolutely. In the very near future? That’s why the honorable Prime Minister was very confident much before the elections were notified, much before the code of conduct. He said, ‘Give me a third term. I’ll show you that India’s economy will be the third largest.’ For a Prime Minister to state that would require confidence. After all, in ten years, we have risen from the 10th rank to the fifth. It was somewhat amusing when a former finance minister said it was an arithmetic inevitability. ‘It will happen. You don’t need a magic wand. It will happen now, automatically.’ I’d like to remind him that they themselves projected it not until 2038 or something. Can we reach the fifth rank? We have already reached it. Your estimate was that much of it was an arithmetic inevitability, whereas we have achieved it much earlier. And again, from 2004 to 2014, hardly two ranks improved. So if it is inevitable, why couldn’t it have been reached earlier? That’s the speed at which inevitability will result. So I’m sorry. It is possible. We’ve done the work, lifting the economy from 10 to 5. Now, we aim to lift it from 5 to 3.”

 

Sitharaman also illuminated the Indian government’s significant economic achievements over the past decade. When asked about the government’s notable accomplishments, Sitharaman highlighted the substantial investments made in public infrastructure, both digital and physical.

Sitharaman further underscored the government’s commitment to the states, highlighting the provision of 50-year interest-free loans. She explained that these loans aim to empower states to undertake infrastructural development projects without any attached conditions. “We’ve given them 50%, 50-year interest-free loans, which of course, after 50 years, you know what value it might have, whether they return it or whether it is treated as a grant is a different question. We’ve provided the 50-year interest-free loans so that they can build without any conditions. They can build whatever they want as a priority for the states. More than three lakh crores have been provided to the states for this purpose. Fifty-year interest-free loans for states to spend on capital infrastructure, whichever they choose. So many states have built good infrastructure for themselves,” said FM Sitharaman.

According to Sitharaman, these investments have had a profound multiplier effect on the economy, benefiting the nation. She emphasized that the post-COVID era has showcased distinct results, with the Indian economy bouncing back swiftly, positioning India as the fastest-growing economy globally.

Sitharaman believes this initiative allows states to prioritize and execute projects catering to their needs and requirements. The Finance Minister shared staggering figures, indicating that over three lakh crores (approximately 3.28 lakh crores) have been disbursed to the states under this scheme. This substantial financial support, provided over 50 years, is earmarked for capital expenditure and infrastructure development, offering states the financial flexibility to enhance their infrastructure significantly.

The impact of these investments and financial assistance has been tangible, with numerous states witnessing the construction of robust infrastructure that contributes to their overall development and growth.

In conclusion, Sitharaman’s remarks underscore the government’s unwavering commitment to economic growth and development. By prioritizing investments in public infrastructure and extending financial support to the states, the government aims to propel India towards sustained economic prosperity and inclusive growth.

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