New Delhi, Dec 17 (NationPress) Finance Minister Nirmala Sitharaman announced on Wednesday that the government's primary goal for the upcoming fiscal year (2026-27) will be to lower the nation's debt-to-GDP ratio.

During a media conference, Sitharaman emphasized the importance of decreasing the debt-to-GDP ratio, which surged beyond 60 percent during the COVID-19 pandemic.

"It is already decreasing, but we aim to lower it further, making it a critical focus for the next fiscal year," she remarked, referencing RBI reports that indicate concerning debt-to-GDP ratios in certain states.

"Without adhering to the limits set by the Fiscal Responsibility and Budget Management Act and reducing high-interest debt, states are forced to borrow just to service existing loans, hindering development—this is detrimental to fiscal health. This jeopardizes the ten-year vision for Viksit Bharat by 2047," she pointed out.

The Finance Minister indicated that the central government is committed to enhancing budgeting transparency and ensuring that fiscal management aligns with accountability standards. "We've reduced the debt-to-GDP from over 60 percent post-COVID; it's on a downward trend, with debt reduction being a primary focus in the upcoming financial year (fiscal deficit will remain a key indicator). Entrepreneurial bankers are witnessing this evolving environment," she added.

Sitharaman highlighted that the government is also making strides in strengthening the bond market to attract more investments.

Under the consistent leadership of Prime Minister Narendra Modi, now in his third term, the Union government has established a strong global presence capable of negotiating effectively. This stability is a significant asset, she noted.

She further mentioned that through financial inclusion and initiatives like Mudra, credit access has expanded, allowing a broader credit footprint for Indians, which enables formal banking.

"I say this because we can aim for an India contributing 25 percent to global trade—this is our target for Viksit Bharat: to rejuvenate manufacturing, agriculture, value addition, and the services sector (which has independently grown to over 60 percent of GDP, despite minimal government intervention—not only in IT but also in tourism and hospitality)," the Finance Minister stated.

Sitharaman underscored the value added by private sector research and development. "Despite the corporate tax reductions in 2019, we see stagnation in capacity expansion; profits are rising without corresponding investments. Prime Minister Modi supports corporations to generate jobs and enhance GDP, but questions linger. GCCs and data centers are creating job opportunities, necessitating energy security—hence the approval of the nuclear bill and the inclusion of small modular reactors as clean energy alongside pumped storage, hydro, solar, and wind," she explained.

"Navigating the complexities of geoeconomics presents a bright opportunity for sustained growth; maintaining this growth year after year is an achievement by the people of India. All of us, including political parties and critics, should recognize this, as the credit belongs to the citizens of India. Contrary to widespread predictions, whether through COVID or other challenges, the resilience of India is a narrative we must all support for the coming decades," the Finance Minister concluded.

She expressed concern that "globally, trade is neither fair nor free. India faces critiques for being protectionist or a 'tariff king', yet tariffs are weaponized—India protects itself from dumping while others escape scrutiny."

"This is our new reality; India must negotiate astutely, leveraging its economic prowess," she added.