India stays ahead of global turbulence as economy grows 7.8% in Q1: Nirmala Sitharaman

India has delivered a strong growth signal amid a turbulent global economy, with Union Finance Minister Nirmala Sitharaman highlighting a 7.8% expansion in the first quarter of FY2026-27 as evidence of the country's economic resilience.

Addressing investors in New York on Wednesday, Sitharaman said India continues to be the fastest-growing major economy in the world, despite global disruptions and persistent uncertainty.

Sitharaman was speaking at a high-level business roundtable organised by the Consulate General of India in New York in association with Bank of America. She arrived in New York after attending the G20 finance ministerial meeting in Asheville, North Carolina.

Reforms at centre of India's growth story 

Sitharaman told investors that India's growth momentum has been supported by a sustained reform push aimed at improving regulatory certainty and making it easier for businesses to operate.

She pointed to measures such as the Insolvency and Bankruptcy Code, which she said have helped improve regulatory clarity, ease compliance and reduce paperwork.

According to the finance minister, simplifying the business environment has remained a key priority of the government since it came to office more than a decade ago.

Infrastructure, AI & MSMEs in focus 

Sitharaman outlined several areas that the government sees as critical to sustaining India's economic expansion.

These include the creation of capital assets and continued infrastructure investment, particularly in the aviation sector. The government is also seeking to strengthen the investment climate, accelerate the development of artificial intelligence and data centres, and expand support for global capability centres.

The finance minister also highlighted efforts to ensure adequate credit availability for micro, small and medium enterprises, while reducing non-performing assets in the banking system.

Taken together, she said, these measures have created a more supportive environment for banks and industry to expand, invest and strengthen their operations.

Fiscal discipline remains a priority 

Sitharaman also sought to reassure global investors that India's growth push remains anchored in fiscal prudence.

She said India has stayed committed to fiscal discipline over the past several years despite the economic challenges that have followed the Covid-19 pandemic and continued global disruptions.

At the same time, the investment climate has improved, she said, with both the central and state governments becoming more competitive and proactive in attracting investments.

India-US trade & investment linkages 

India's growth trajectory could also create greater opportunities for deeper economic ties with the United States, India's Ambassador to the US Vinay Kwatra said in his welcome address.

Kwatra described the latest GDP figures as a manifestation of the resilience of the Indian economy and said both countries could benefit from India's rapid growth by building stronger links between trade and investment.

For New Delhi, the broader objective extends beyond near-term growth numbers. Sitharaman framed the reforms, infrastructure push, investment drive and emerging technology focus as part of the larger national ambition of building a Viksit Bharat by 2047.

The 7.8% Q1 growth figure, therefore, is being positioned not merely as a strong economic print, but as evidence that India is attempting to sustain its growth story even as the global economy navigates a period of heightened uncertainty.