India is set to become the world’s third-largest economy, said Union Finance Minister Nirmala Sitharaman, on Tuesday, adding that rapid progress has brought the country from the threshold of being the 10th-largest economy in 2014 to the fastest-growing economy today.
“What is making us literally stand out is the fast movement from the tenth largest economy in 2014 to fifth and the fourth, and now sooner, probably to the third,” she said.
Speaking at an event at the Delhi School of Economics in New Delhi, Sitharaman said, “We are at a time when India is moving fast on so many different parameters, largely economic. Of course, India and its population and India and its location on the global map have strategic significance. But India stands together today and stands tall and distinct on its feet because of its economic strength.”
Stressing on the country’s economic strength and structural resilience that proved “international bullies” wrong, the minister said “we should have faith that we are achieving our goals and not get swayed by whoever says we are dead or alive”.
When asked if she was referring to US President Donald Trump’s comment on the Indian economy being “dead”, she replied, “Yes, I am referring to that remark.”
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The minister further said the government has been able to pull 25 million people out of multi-dimensional poverty, and emphasised the need to strengthen India-centric research and policy engagement and develop models suited to emerging economies.
“I am not saying we have become a developed country yet, because Viksit Bharat 2047 lies ahead of us,” she added.
As regards the banking sector, Sitharaman said the balance sheets of public sector banks have improved significantly compared to the twin balance sheet problem they faced 7-8 years ago.
She exuded confidence that the government would meet the ambitious fiscal deficit target of 4.4 per cent for the current financial year.
The Centre estimates the fiscal deficit during 2025-26 at 4.4 per cent of the GDP, or ₹15.69 lakh crore.
The minister warned that India is at an “inflection point shaped by technological disruption, artificial intelligence, and sustainability challenges”, and that “without technology, all land, labour, and capital are going to go away”.
Underscoring the importance of data-driven policymaking and deeper India-centric research on climate finance, employment elasticity, fiscal federalism, and GST reforms, she said significant work has gone into drafting the new Income Tax Act – including efforts to raise the exemption limit to ₹12 lakh – and modernising customs operations.
Urging young economists to ensure India’s perspectives feature prominently in global debates, she said “globalisation is literally in retreat” and that global growth may face headwinds over the next two decades.
She also said India will chair the BRICS grouping next year, making it an all-important event that will project India’s economic voice globally.
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