Capex key to India's growth strategy, fiscal prudence remains top priority: Sitharaman at HSBC event

Finance Minister Nirmala Sitharaman reiterated India's growth strategy at an HSBC event, emphasizing the crucial role of capital expenditure in driving economic growth. She highlighted that government capital spending helps private companies expand and invest, noting that over the past four to five years, such spending has yielded strong results.

Sitharaman stressed that higher public investment has generated robust economic returns, with a growing multiplier effect. The minister expressed confidence that the government would continue to take proactive measures to support growth, despite geopolitical conflicts, elevated interest rates, and trade tensions. While stressing the importance of fiscal discipline, Sitharaman also emphasized the government's commitment to growth-supportive spending.

She noted that calls for increased public spending are often made in the context of a rapidly growing economy, and that such expenditure must be undertaken responsibly. Sitharaman reported that India's economy remains strong, with Goods and Services Tax (GST) collections rising by 23% year-on-year in October, marking the fastest growth since the tax overhaul.

The collection also reached the second-highest monthly GST mop-up on record. She concluded by highlighting that Indian banks have successfully overcome past stress and must remain future-ready for upcoming global challenges.