Nirmala Sitharaman Warns: India Can’t Take Growth for Granted

Finance Minister Nirmala Sitharaman said India is performing reasonably well, but economic progress should not be taken for granted. Speaking at the Mindmine Summit 2026 in New Delhi, she stressed that continuous innovation, reforms, and stronger institutions are needed to maintain growth momentum.

Sitharaman said some sectors have performed strongly, but industries dealing with complex and intermediate products still need focused policy support. She noted that long-standing challenges remain and require better implementation, reforms, and fresh policy approaches.

She warned that India faces several risks, including volatility in foreign exchange markets, crude oil prices, and fertiliser costs. The country is also under pressure from rising import costs of key raw materials, which continue to create challenges for the economy.

On weather conditions, Sitharaman flagged the impact of El Niño and said the government is preparing for a “not-so-good” monsoon this year. Some regions may face drought while others could see excessive rainfall, creating concerns for agriculture, food prices, and rural demand.

The Finance Minister said the global environment is changing rapidly, with new challenges emerging almost every week. While the effects of the Covid-19 pandemic are still influencing policy planning, she said no major disruptions are currently expected and India must remain prepared for any eventuality.

On foreign investment, Sitharaman said the government wants more foreign capital to come into India and has taken a calibrated approach to attract investors. Recent tax changes and measures by the Reserve Bank of India are expected to support higher foreign capital inflows.

She highlighted the RBI’s concessional forex swap facility for public sector companies raising external borrowings and said more steps could follow. “We recognise that we need more foreign capital to come in,” Sitharaman said, adding that the government will continue monitoring developments and strengthening India’s long-term growth prospects.