India Fastest-Growing Economy For 4th Year, Says Nirmala Sitharaman

Finance Minister Nirmala Sitharaman on Friday said India is sustaining its GDP growth momentum as the fastest-growing economy for the fourth year in a row, aided by manufacturing, services and farm sectors.

She said India's manufacturing activity has been "good" during the January-March period, which has helped clock a GDP growth of 7.4 per cent during the quarter and 6.5 per cent for the full 2024-25 fiscal.

"India is sustaining the growth, and it is the fastest growing economy now for the fourth year continuously thanks to the work of small, medium, and large industries; industries which are coming in and making sure our manufacturing capacity, our service capacity are all intact. Agriculture has also sustained us even during Covid and subsequently," Sitharaman said.

The 6.5 per cent GDP growth for FY'25 comes on a high base of FY'24 when the economy grew at 9.2 per cent. The 7.4 per cent growth in the March quarter was also on a high base of 8.4 per cent in FY'24.

Speaking at the Lakshmipat Singhania -IIM Lucknow National Leadership Award, the Minister said during the January-March quarter there were views that industry was not investing enough, capacities were not increasing and questioned its impact on the economy.

"I'm glad, India's industry.. the manufacturing activity have all been good during Q4 of 2024-25 and there was a real GDP growth of 7.4 per cent in Q4 alone. As a result, for the entire financial year of 2024-25 (April-March), the real GDP growth was 6.5 per cent," Nirmala Sitharaman said.

During the fourth quarter of FY'25, manufacturing output grew at 4.8 per cent, as against 11.3 per cent in the same quarter of FY'24.

The services sector expanded 7.3 per cent in the March quarter, while the farm sector growth was 5.4 per cent.

Nirmala Sitharaman said every year the Government is working to remove regulatory difficulties and bring in soft-touch regulation, which will allow people to do business without suspicion.

She said she is open to receiving suggestions for removing hurdles to business in easing regulatory hurdles.

"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 more are we going to say we are a developing country.

"When our own people are going all over the world and working at leadership levels in various sectors. '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.

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