Government Committed to Driving Economic Reforms, Maintaining Momentum: Finance Minister Sitharaman

India Committed to Driving Economic Growth Amid Global Challenges

Finance Minister Nirmala Sitharaman on Friday reiterated the government's commitment to driving the 'Reform Express' with decisive policy measures to ensure positive economic momentum in the face of global challenges. These measures aim to counterbalance the impact of elevated energy and other commodity prices, as well as continued supply disruptions arising from the West Asia conflict.

The Reserve Bank of India (RBI) had earlier in the day lowered its GDP forecast for FY27 to 6.6 per cent from the 6.9 per cent estimated in April. This revised forecast is attributed to the ongoing global economic challenges. However, the provisional estimates indicate that real GDP is expected to rise by 7.7 per cent in FY26, while real Gross Value Added (GVA) has grown by 7.9 per cent in the same fiscal year.

The growth of real GDP and real GVA is also estimated to reach 7.8 per cent and 7.9 per cent, respectively, in Q4 of FY26. Furthermore, various sectors such as manufacturing, trade, repair, hotels, transport, communication & services related to broadcasting, storage, and financial, real estate & professional services have achieved double-digit growth at both constant and current prices in FY26.

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To attract foreign capital and counteract pressure on the rupee, the government has exempted foreign investors from income tax on interest earnings and capital gains from government securities. This exemption is applicable with effect from April 1 and will apply to any interest or capital gains arising to Foreign Portfolio Investors (FPIs) on or after April 1 in respect of investments in G-Secs.