FM Nirmala Sitharaman makes big statement on FY23, FY24 GDP

Union Finance Minister Nirmala Sitharaman on Friday said the Indian economy will grow at 7.4 per cent in this fiscal and continue at the same level in the next fiscal as well. 

"... Estimates have also shown based on the developments, that we are definitely at that range... 7.4 (per cent) and that level will continue even next year," Sitharaman said while speaking at the FE Best Banks Awards event here.

She quoted the projections by the International Monetary Fund (IMF) and others for the growth figure.

She said the International Monetary Fund and the World Bank have projected India's growth to be the fastest for the next two fiscal years, and their estimates are in sync with that of the Reserve Bank of India as well.

The global situation continues to be challenging and it is not the right time to throw caution to the winds as yet, she said.

The export sector will face difficulties as the global growth slows down and the government will work with such entities facing the headwinds, she said.

Underlining that there is a need for a rigorous debate on freebies, she said that political parties making pre-poll promises should make budgetary provisions for taking care of the expenditures and not push the burden on to other entities.

Sitharaman said power discoms and generating companies have been seen to bear the brunt of such freebies as they get paid in part or in some cases not at all, despite having no role to play in the announcements.

Meanwhile, Finance Minister Nirmala Sitharaman on Friday met US Deputy Treasury Secretary Wally Adeyemo and exchanged views on global economic and financial sector issues.

"FM Smt. @nsitharaman and Mr @wallyadeyemo discussed India's G20 Presidency in 2023, as well as areas of cooperation for continued and enhanced India-USA partnership," the finance ministry said in a tweet.

India will hold the Presidency of the G20 from December 1 to November 30, 2023. India will host the G20 summit next year.

G20 is the premier forum for international economic cooperation that plays an important role in global economic governance.

(With PTI inputs)