After ushering in landmark GST reforms earlier this year, Finance Minister Nirmala Sitharaman has revealed that the government is now focusing on "immense work" toward next-generation customs reforms to modernize trade facilitation and boost India's competitiveness in the global economy.
Delivering the Valedictory Lecture at the Delhi School of Economics, FM Sitharaman said India now stands "tall and distinctly on its feet" due to strong macroeconomic fundamentals and robust policy measures. She expressed confidence that the country is poised to become the world's third-largest economy in the near future.
"We are not a developed country yet, because Viksit Bharat 2047 lies ahead of us. But our rapid progress-from being the 10th-largest economy in 2014 to the 5th today, and soon to be the 4th and probably the 3rd before long-speaks volumes about India's strength," FM Sitharaman remarked.
Fiscal Roadmap and Economic Discipline
Reiterating the government's commitment to fiscal prudence, Sitharaman said the Centre remains determined to meet the 4.4% fiscal deficit target for FY26, after which attention will shift to reducing the debt-to-GDP ratio.
She underlined that fiscal stability and sound macroeconomic fundamentals form the backbone of India's credibility in global markets.
"Unless your economy is sound, you cannot stand up and speak with confidence," she said.
Addressing Global Perceptions and India's Economic Strength
Responding to international scepticism, the finance minister stated that India's achievements stem from its own economic resilience and reform momentum, not from external validation.
"We should have faith that we are achieving these goals ourselves and not get swayed by those who question our economy," she said.
Citing data from recent poverty assessments, Sitharaman noted that over 25 million Indians have been lifted out of multidimensional poverty, underscoring the inclusive nature of India's growth journey.
Technology and Research: Drivers of Policy Innovation
Calling for greater engagement between economists and policymakers, Sitharaman urged young researchers to ensure that Indian perspectives shape global economic debates, particularly those affecting the Global South.
She emphasized that technology-especially artificial intelligence is transforming economic policymaking, including tax enforcement and evasion detection.
"Technology is playing such an immense role that all of us studying the economy should factor that in. We must use data-driven insights to inform future policies," she said.
Future Policy Challenges and Research Priorities
Looking ahead, the finance minister identified several emerging challenges, including ageing populations, rapid urbanisation, automation and supply chain realignments. She stressed the need for innovative solutions from younger economists to sustain India's long-term growth.
"With globalisation in retreat, sustaining high growth over the next two decades will be challenging. Unless younger minds come up with robust solutions, we will not be able to keep pace with India's development agenda," Sitharaman cautioned.
Conclusion
As India moves toward its Viksit Bharat 2047 vision, the government's push for next-generation customs and economic reforms signals a continued commitment to simplification, technology-driven efficiency, and fiscal discipline - key pillars in India's journey to becoming a global economic powerhouse.
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