Finance Minister Nirmala Sitharaman told members of the Indian diaspora in Chicago that the country is on track to deliver economic growth of around seven percent or higher in the 2026‑27 fiscal year. She emphasized that the pace observed since the COVID‑19 pandemic is expected to continue, even as the world grapples with geopolitical tensions and supply‑chain disruptions.
Growth outlook and external challenges
Sitharaman highlighted that, despite the fallout from the United States‑Iran confrontation and the temporary closure of the Strait of Hormuz, India’s growth momentum remains intact. The closure initially hampered the flow of essential commodities such as petroleum, natural gas and fertilisers. However, the government was able to divert supplies through alternative routes, ensuring that domestic demand was met.
She noted that many nations are experiencing severe distortions in their economic calculations because of the same uncertainties, yet India has managed to stay afloat by continuously monitoring global developments while addressing internal needs. The finance minister underscored that this dual focus has helped the country avoid the worst of the disruptions.
Policy measures and investment drive
On the domestic front, the ministry has kept fertiliser prices stable for farmers through targeted subsidies, despite a sharp rise in international market prices. Sitharaman assured that sufficient stocks are in place for the upcoming season that begins in November, reducing the risk of price volatility for the agricultural sector.
Looking ahead, the government intends to press forward with systemic reforms and to attract additional capital, especially from overseas sources. Private investment has begun to pick up following a series of capital‑expenditure incentives, but the finance minister stressed that meeting the country’s ambitious growth targets will require substantial foreign funding.
During recent trips to Canada and the United States, as well as engagements involving other senior ministers and the prime minister, Indian officials have been meeting with global fund managers. The goal, according to Sitharaman, is to showcase the progress already achieved, understand investor expectations, and provide clear policy guidance that could unlock further capital inflows.
Economic data support the optimism. After a 5.8 percent contraction in the 2020‑21 fiscal year, India has posted growth above seven percent for each of the past five years. The Economic Survey for FY26 projects FY27 growth in the range of 6.8‑7.2 percent, while the Reserve Bank of India estimates a 6.7 percent increase in gross domestic product. The statistics ministry is slated to publish the June‑quarter GDP figures on the upcoming Monday.
In parallel, Commerce and Industry Minister Piyush Goyal’s recent visit to Japan aimed at securing $60 billion in investment commitments by 2035. Sitharaman added that India is also negotiating bilateral investment treaties and trade agreements with several countries to broaden the investment base.
These outreach efforts come at a time when net foreign direct investment (FDI) inflows have sharply declined. Net FDI fell from an average of $40 billion per year between FY20 and FY22 to just $6.95 billion in FY26, prompting the government to intensify its push for overseas capital.
Overall, the finance minister’s remarks paint a picture of a resilient economy that is actively managing external shocks while laying the groundwork for sustained growth through policy continuity, strategic subsidies, and an aggressive campaign to draw foreign investment.
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