Finance Minister Nirmala Sitharaman said that India is likely to sustain an economic growth rate of 7 per cent or more in the financial year 2026-27. Addressing Indian diaspora in Chicago during her US visit, she said India is likely to maintain its growth momentum despite geopolitical uncertainties and supply-chain disruptions following the US-Iran conflict and the closure of the Strait of Hormuz.
She said that the disruption in the Strait of Hormuz due to West Asia conflict initially affected supplies of key commodities such as crude, petroleum products and fertilisers to India, but the country managed to reroute supplies. The Finance Minister highlighted that the government has also kept fertiliser prices unchanged for farmers through subsidies despite a sharp rise in international prices.
Ms. Sitharaman further stated that the government will continue with systemic reforms and seek to mobilise more capital, particularly from overseas, as India’s economy expands.
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