Finance Minister Nirmala Sitharaman on 1 September said India's 7.8 per cent economic growth in the first quarter of financial year 2026-27 reflects the hard work of its people and the expanding strength of its manufacturing and services sectors. Speaking on the sidelines of the G20 Finance Ministers' meeting in Asheville, she described the latest estimates as evidence of broad-based momentum across the economy.

Key Growth Numbers

Sitharaman cited manufacturing growth of 9.2 per cent and an expansion of 12.1 per cent in the financial and professional services sector during the quarter. India's foreign exchange reserves stood at slightly over $700 billion, she added.

'So across the board, growth is really clearly showing that Indians are working hard and taking the economy forward,' she said.

Viksit Bharat 2047 Vision

The Finance Minister linked the quarterly performance to the government's longer-term ambition. 'Prime Minister Modi has given us the Viksit Bharat goal for 2047. If every quarter Indians are able to lift the Indian economy like this, I'm sure clearly by 2047, the goal will be achieved,' she said.

Sitharaman attributed the economy's resilience to reforms undertaken across government departments, ministries, and the financial sector. She also highlighted India's digital public infrastructure — including UPI, NPCI, and QR codes — as a key enabler that has allowed small, micro, and medium enterprises to access global markets.

Challenges Acknowledged

Sitharaman acknowledged that India remains exposed to import dependence in crude oil, petroleum products, and fertilisers such as urea, ammonia, and DAP. She nevertheless described India as 'an economy which is receptive to the changes globally and adjusts itself in such a way that our growth does not get affected.'

She also credited state governments for easing the business environment, noting that more than 1,000 archaic laws had been removed and around 40,000 regulations simplified. The government, she said, continues to engage with industry and pursue bilateral trade and investor protection agreements.

G20 Deliberations and Bilateral Meetings

On the G20 financial track, Sitharaman said India supports the priorities advanced by the US presidency, including economic growth, addressing global imbalances, and financial literacy. She held a bilateral meeting with US Treasury Secretary Scott Bessent, describing it as 'very positive' and 'constructive.'

She also met counterparts from Poland, Qatar, South Korea, and Russia, saying all parties had facts about India's economy and were looking to deepen ties. Earlier in her overseas tour, Sitharaman visited Canada — where she met her Canadian counterpart and held discussions with pension funds interested in investing in India — and Chicago, where she engaged funding agencies and visited the Polsky Center for Entrepreneurship and Innovation.

After Asheville, she is scheduled to travel to New York to meet prospective investors. The government, she said, will continue reforms in customs and banking, including measures to make import clearances at Indian ports more seamless.