Global trade shifts provide new opportunities for India - US ties: FM Sitharaman | Today news

In the midst of rising global trading barriers and moving investment flow, Finance Minister Nirmala Sitharaman sees a silver lining strategic opportunities for deeper India-in the tires in sectors such as semiconductors, quantum technology, pharmaceutical products and nuclear energy. Sitharaman, who spoke at Hoover Institution, Stanford University, noted that trade restrictions have increased a lot since 2019 as countries look inward to protect domestic industries and work. “It is surprising that the global investment markets are restarted to achieve a better balance between external LED growth and domestic growth, between the main street and the Wall Street, and between transition and energy security,” she said. Despite being scary, these global shifts are “full of new opportunities”, she added. Sitharaman is on an official visit to the US from April 20 to 25 to attend the Spring Meetings of the International Monetary Fund (IMF) and the World Bank and meet her US counterpart Scott Besent. On the domestic front, she said that India’s long -term growth would require daring reforms, deregulation, improved institutional partnerships and agile policy strategies, and it was used for a changing global landscape. The last two trade union budgets, she noted, have already laid the foundation with a clear, multisectoral agenda. Manufacturing as core Sitharaman has placed manufacturing in the heart of India’s transformation story – both as an economic engine and a pillar of national power. “Manufacturing binds societies and lends and lends cohesion to communities by providing jobs and financial power to communities,” she said. “In the post-post-vodel world, the manufacture increases national security,” she added. Sitharaman also emphasized that the government is focused on reducing regulatory friction, digitizing approvals and the integration of MSMEs into global value chains, while the purposeful support-especially for women-led and rural enterprise is added to the expansion of economic opportunities and driving growth. Referring to the demographic benefit of India, Sitharaman emphasizes the importance of the institution of education with the needs of Industry 4.0. “India has an unprecedented opportunity to pick a demographic dividend, but it requires corresponding education and skill with the demands of industry 4.0,” she added. Meanwhile, Sitharaman underlines cautious fiscal management and livestock structural reforms as twin pillars of India’s long -term growth, confirming the government’s commitment to fiscal consolidation. “The sensible fiscal management will be one of the most important pillars of India’s driving force,” she said, adding that the government is aimed at achieving a balance between savings and investment, ensuring a strong external account and enabling private businesses to access capital at a reasonable cost. “In 2020–21 we promised to halve the fiscal deficit more than. We fulfilled the promise, as the government’s deficit ratio of 9.2% of GDP dropped to a budgeted 4.4%,” she added. Sitharaman said the quality of fiscal consolidation is reflected in a steady increase in capital spending. “Capital expenses as a percentage of GDP rose from 2.1% in 2020–21 to a projected 3.1% in 2025-26,” she said. A fiscal consolidation path in the medium term has also been set out, she added. Sitharaman said the government remains committed to relieving the cost of doing business, especially for MSMEs. “Flexible labor laws, transparent land markets and simplified tax regimes must rally to create a seamless, competitive environment,” she added. First published: 22 Apr 2025, 12:20 IST