Govt Adopts Multi-Pronged Strategy to Sustain Economic Growth: MoS Finance
The government has been taking various measures to boost economic growth in light of global challenges and uncertainties, according to minister of state for finance Pankaj Chaudhary
New Delhi: The government on Monday said it has been taking a multi-pronged approach to sustain economic growth amid global uncertainties. The government has been taking various measures to boost economic growth in light of global challenges and uncertainties, according to minister of state for finance Pankaj Chaudhary.
“The estimate of fiscal deficit for the year 2025-26, as presented in the Union Budget 2025-26, is 4.4 per cent. There is no requirement for revision of fiscal deficit target at this stage, and neither is it considered appropriate,” the minister said in a written reply in the Lok Sabha.
The minister further said that India’s economic resilience is underpinned by strong macroeconomic fundamentals such as steady growth, price stability, credible fiscal consolidation, resilient external sector performance, robust foreign exchange reserves, a strong and well-capitalised banking sector, and robust physical and digital infrastructure. “Additionally, India's well-regulated financial system, credible inflation-targeting regime, and flexible exchange rate contribute to the economy's resilience to shocks,” he added.
In response to recent global challenges such as trade tensions, he said that uncertain capital flows, and geopolitical risks, the government has been taking a multi-pronged approach to sustain economic growth. “Liberalisation of FDI, bilateral engagement with countries for the finalisation of various trade agreements, credit guarantee schemes, and increased public expenditures, particularly capex,” he added.
In the Union Budget 2025-26, an outlay of Rs 1.5 lakh crore has been proposed in this regard. To strengthen power sector resilience, he said that the Budget also proposed incentives for electricity distribution reforms and augmentation of intra-state transmission capacity, with an additional borrowing of 0.5 per cent of gross state domestic product allowed for states, contingent on undertaking these reforms.
“Moreover, the Budget also proposed to launch a comprehensive multi-sectoral 'Rural Prosperity and Resilience' programme in partnership with states, which aims to address under-employment in agriculture,” he added.