Nirmala Sitharaman US visit: 'India committed to bringing fiscal deficit below 4.5% by 2026,' says Finance Minister

Union Finance Minister Nirmala Sitharaman on Monday said that India has committed to managing its fiscal deficit effectively, aiming to bring it below 4.5% by 2026. This initiative follows a strategic plan initiated in 2021 to set year-on-year targets, healing from the deficit surge during the Covid-19 pandemic. 

"During the Covid-19 pandemic, our fiscal deficit went up. But in 2021, we came up with a clear signal as to how we wanted to manage our fiscal deficit. We set year-on-year targets and committed to bringing the fiscal deficit below 4.5% by 2026. And that's what we have been following each year without fail," Sitharaman told the Indian diaspora in San Francisco. 

She added that international institutions like the IMF and World Bank acknowledge India as a pivotal force in global trade, reflecting the country's significant economic potential.

Sitharaman commented that the government's primary focus under Prime Minister Narendra Modi is achieving 'Viksit Bharat' by 2047. This vision encompasses improvements across sectors impacting women, the impoverished, youth, and farmers, Sitharaman said.

Furthermore, the Finance Minister said that India prioritises 'Sunrise Sectors' and stands out as a leader in Digital Public Infrastructure, driving innovation and growth. She also noted how Prime Minister Modi consistently engages with the Indian diaspora during overseas visits, underscoring the importance of maintaining connections with Indians worldwide.

"Prime Minister Narendra Modi makes it a part of his every overseas visit to connect with the Indian diaspora because he thinks that it is important that India connects with each one of you who, located in whichever part of the world, are doing your best to contribute to the world and stand out as an example."

In a move to strengthen international ties, Sitharaman embarked on a five-day visit to the United States. Upon her arrival in San Francisco, she was received by Indian Ambassador Vinay Mohan Kwatra. 

During the visit, she is slated to deliver a keynote speech at Stanford University and engage with CEOs in San Francisco, fostering discussions on investment and technological advancements. The visit will also include participation in diaspora events, enhancing India's global cultural presence.

In Washington DC, Sitharaman will attend several high-level meetings, including those with the IMF and World Bank Spring Meetings, and the G20 Finance Ministers and Central Bank Governors Meetings. She will also hold bilateral talks with counterparts from multiple nations, underscoring India's commitment to international cooperation and development.