Chicago, Aug 31: India is expected to maintain an economic growth rate of around 7 per cent or higher in the financial year 2026-27, Finance Minister Nirmala Sitharaman said, expressing confidence in the country’s economic resilience despite continuing global uncertainties.
Addressing members of the Indian diaspora in Chicago during her visit to the United States, Sitharaman said India has managed to maintain its growth momentum in the years following the Covid-19 pandemic and is likely to continue on the same path in FY27.
The Finance Minister said India’s ability to closely monitor global developments while keeping domestic economic priorities in focus has helped the country navigate several external challenges.
Geopolitical tensions and disruptions to global supply chains, particularly those linked to the conflict in the Middle East and developments around the Strait of Hormuz, have created fresh risks for the global economy. However, India has taken steps to minimise the impact on domestic supplies.
Sitharaman said disruptions around the Strait of Hormuz had initially affected the movement of important commodities, including crude oil, petroleum products and fertilisers. India, however, was able to reroute supplies and maintain availability in the domestic market.
She also highlighted the government’s efforts to shield farmers from the impact of rising international fertiliser prices by keeping domestic prices stable through subsidies. The country, she added, is adequately stocked to meet fertiliser requirements for the upcoming agricultural season beginning in November.
The Finance Minister also stressed that India’s growth ambitions would require continued investment and capital mobilisation. While domestic private investment has started to improve following the government’s sustained focus on capital expenditure, attracting foreign capital will remain important for meeting the country’s expanding investment needs.
Sitharaman said the government is engaging with global investment funds during her international visits to showcase India’s economic progress and understand the expectations of overseas investors.
She said such discussions are aimed at creating greater clarity for global investors and strengthening India’s position as an attractive destination for long-term investment.
The Finance Minister’s remarks reflect the government’s confidence that strong domestic demand, continued reforms, infrastructure investment and rising global interest in India can help sustain the country’s economic growth momentum despite external headwinds.