Sound and strong macro fundamentals help us speak up, take a stand, says FM

Union Finance Minister Nirmala Sitharaman, speaking at the Delhi School of Economics (DSE), emphasized India’s strong and resilient macroeconomic fundamentals, asserting that the nation is poised to become the world’s third-largest economy in the near future. She said India stands tall on its own feet, driven by solid economic parameters, and that these fundamentals empower the country to “speak up, take a stand, and defend itself” on the global stage.

Referring to recent remarks by former US President Donald Trump, who described India as a “dead economy,” Sitharaman rejected the characterization, stating that India’s economic progress speaks for itself. With a population exceeding 140 crore, the country has moved from being the 10th largest economy to the 5th, on its way to becoming the 4th and soon the 3rd largest. She highlighted the country’s success in lifting 25 million people out of multidimensional poverty, attributing it to the collective efforts and resilience of the Indian people.

Sitharaman called upon the youth and academic community to rely on data-driven analysis and contribute towards bridging the gap between research and governance. She urged students and researchers at DSE to use empirical data to generate actionable policy insights that can aid India’s rapid economic transformation. Stressing the importance of India-centric research and models tailored for emerging economies, she said global economic theories are often Western-centric, and India must develop frameworks that not only serve its own context but also the broader Global South.

The Finance Minister emphasized that technology and Artificial Intelligence (AI) have become critical components of economic growth, describing them as the “fifth factor of production” alongside land, labor, and capital. She explained that technology’s growing influence—from agriculture to manufacturing and governance—is redefining economic structures. While some fear AI may lead to job losses, she noted that it also creates opportunities for innovation and solutions to long-standing problems in sectors like infrastructure, healthcare, and civic development.

Sitharaman encouraged DSE to train students and policymakers in advanced Big Data analytics, AI, and data science, suggesting that these tools could be used to analyze economic trends, predict early warnings, and strengthen policymaking. She advocated for blending economics with data science, environmental science, and public policy to design integrated models that support rapid and sustainable growth.

Addressing concerns about privatization of public sector banks, Sitharaman clarified that while nationalization helped achieve financial inclusion and support government programs, it also introduced inefficiencies. Privatization, she said, would not harm inclusion but rather enhance professionalism and service quality within the banking sector.

She also underscored India’s progress in multiple domains—economic, military, and technological. The nation’s young innovators, startup ecosystem, and IT sector are driving rapid advancement. This multidimensional growth, she said, empowers India to maintain both external confidence and domestic inclusivity, narrowing gaps between rich and poor, rural and urban, men and women.

Finally, with less than three months left before the next Union Budget, Sitharaman extended an open invitation to DSE’s students, faculty, and researchers to share innovative policy ideas for the upcoming Budget. She promised to personally review their suggestions alongside Finance Ministry officials, encouraging collaboration between academia and government. Her vision, she concluded, aligns with India’s long-term goal of achieving “Viksit Bharat” (Developed India) by 2047, powered by knowledge, innovation, and inclusive economic strength.