Pakistan suffered $40 billion in economic losses due to suspension of trade with India: PIBC chief

Finance Minister Nirmala Sitharaman affirmed on Monday that India's fundamental economic indicators display no signs of instability, praising robust GST receipts and a resilient banking system. Addressing a crowd at HSBC India's Third Annual Financial Inclusion Gathering, she urged citizens to communicate with more assurance regarding the nation's economic progress.

In a conversation with HSBC India CEO Hitendra Dave, Sitharaman acknowledged that even knowledgeable individuals sometimes exhibit doubts about India's economic prospects. She emphasized the necessity to speak with confidence about India's growth, stating, "That is my request."

The minister highlighted capital expenditure as a critical element of the growth strategy, noting that private sector involvement will be essential to expand or establish new capacities. She underscored the importance of responsible fiscal spending, stating, "We need to be fiscally prudent. Otherwise, it is not a good thing."

Sitharaman reiterated that fiscal prudence will be a top priority under Prime Minister Modi's leadership. She also mentioned that government schemes addressing food security, housing, sanitation, drinking water, and health insurance have improved access to essential services.

Citing a World Bank report, she reported that India's poverty rate has dropped to 2% by the end of FY23 from around 25%, crediting the decline to welfare delivery, financial inclusion, and access to basic services. Sitharaman outlined credit, insurance, and pensions as crucial components for the next stage of financial inclusion.

She reiterated the government's goal of offering insurance coverage to all by 2047 and stressed the importance of facilitating credit access for individuals seeking to initiate or expand businesses.

Regarding employment, Sitharaman expressed the government's ambition to have AI training centers in every district, aiming to equip young people with skills needed for AI-driven jobs and bridge the gap between industry demands and graduates' abilities. She also announced a high-level committee to consult industry representatives and experts before proposing necessary changes to the banking system to support the Viksit Bharat vision.

The government would need to strike a balance between fiscal discipline and sustaining public investment to foster growth, she concluded.