Finance Minister Nirmala Sitharaman on 1 September said India has demonstrated its ability to absorb global economic shocks without sacrificing growth, even as she acknowledged the country's significant dependence on imported crude oil and fertilisers. Her remarks came on the sidelines of the G20 Finance Ministers' meeting in Asheville, where she described India as a 'vibrant and responsive economy.'

Acknowledging the Challenges

'I'll start with the fact that we have challenges. There is just no doubt,' Sitharaman said. India is among the world's largest importers of crude oil, petroleum products, and fertilisers including urea, ammonia, and DAP. 'We have certain production capacity within the country, but despite all that, we are importers,' she said.

Growth Numbers That Stand Out

India recorded a 7.8% GDP growth rate in the first quarter of the 2026-27 financial year, a figure Sitharaman described as especially significant given persistent external pressures. 'Despite these global challenges, if the Indian economy is still growing at 7.8 per cent in the first quarter of this financial year, 2026-2027, it is heartening that the people's hard work is bearing fruit,' she said.

The expansion was broad-based rather than sector-specific. Manufacturing grew at 9.2%, while the financial and professional services sector expanded at 12.1%. India's foreign exchange reserves stood at approximately $700 billion. 'These are not ordinary numbers,' Sitharaman noted.

Digital Infrastructure and Ease of Business

The Finance Minister credited India's digital payment ecosystem — including UPI, NPCI, and QR code infrastructure — with enabling small and medium enterprises to access global markets. She also pointed to regulatory reforms: more than 1,000 laws had been removed and around 40,000 regulations simplified, with state governments actively supporting the ease of doing business.

The government, she added, was continuing to pursue bilateral trade agreements and investor protection agreements while engaging industry and trade bodies. Foreign deposits and overseas investments by Indians, she said, reflected confidence in India's banking system and macroeconomic fundamentals.

India's Position at G20 and What Comes Next

Sitharaman said India supported the US G20 presidency's focus on growth, global imbalances, and financial literacy, calling for 'fair, open discussions' on those issues. On the sidelines, she held bilateral meetings with counterparts from the United States, Poland, Qatar, South Korea, and Russia.

Following the Asheville gathering, Sitharaman is scheduled to travel to New York for meetings with investors interested in India — a signal that the government's capital-attraction drive continues even as global uncertainty persists. The Reserve Bank of India (RBI), she noted, periodically issues economic assessments with indicators trending positively, providing an additional institutional anchor to the government's growth narrative.