Finance Minister Nirmala Sitharaman on Sunday, 30 August projected that India would sustain an economic growth rate of 7 per cent or more in financial year 2026-27, maintaining the post-pandemic momentum that has made India one of the world's fastest-growing major economies. She made the remarks while addressing the Indian diaspora in Chicago during her ongoing visit to the United States.

Growth Outlook Despite Global Headwinds

Sitharaman acknowledged that geopolitical uncertainties — including the US-Iran conflict and the closure of the Strait of Hormuz — had introduced fresh supply-chain pressures. She said India had managed to reroute supplies of critical commodities, including crude oil, petroleum products, and fertilisers, despite initial disruptions. 'Continuously keeping in touch with global uncertainties as much as understanding India's own requirements have kept us floating. Whereas many countries are completely disturbed, their calculations have gone haywire,' she said.

Fertiliser Prices Held Steady for Farmers

The Finance Minister noted that the government had shielded farmers from a sharp rise in international fertiliser prices by maintaining subsidies and keeping domestic prices unchanged. She added that India was adequately stocked ahead of the upcoming agricultural season. 'The forthcoming season will also require fertilisers from November. We are adequately stocked,' Sitharaman said.

Capital Mobilisation and Investment Push

Sitharaman said India's expanding economy requires a sustained inflow of both domestic and international capital. While private investment has picked up on the back of the government's capital expenditure push, she underlined the need to attract global funds. 'Because of the ambitions that we have, we need capital. Therefore, on my trip to Canada and the US, and other ministers as well as the Prime Minister himself, all of us are talking to global funds,' she said. She added that the engagement includes 'showcasing what India has already achieved and hearing their expectations so that we can go back and provide clarity.'

Bilateral Treaties and Diplomatic Outreach

The Finance Minister also disclosed that India is in active discussions with several countries on bilateral investment treaties as well as bilateral trade agreements. This comes amid a broader diplomatic investment drive: Commerce and Industry Minister Piyush Goyal visited Japan last week, where he pushed to mobilise investments worth $60 billion by 2035. Notably, the simultaneous outreach by multiple senior ministers signals a coordinated effort to position India as the preferred destination for global capital amid a shifting geopolitical order.

What Comes Next

With systemic reforms continuing and overseas capital mobilisation a stated priority, the government's near-term focus will be on converting diplomatic engagements into binding investment commitments. The pace of bilateral treaty negotiations and the trajectory of global commodity prices — particularly crude oil — will be key variables shaping India's FY27 growth outcome.