FM Nirmala Sitharaman Outlines India's Roadmap for Future Growth at Stanford University
Tuesday, 22 April 2025, 16:14 IST
India's long-term growth over the next two decades will depend on bold reforms, enhanced domestic capabilities, and strategic institutional partnerships designed for a dynamic global landscape, Finance Minister Nirmala Sitharaman asserted at Stanford University, California. Speaking at the prestigious institution, Sitharaman emphasized that India is positioning itself for a manufacturing-oriented future backed by substantial structural reforms and an ambitious vision for the nation’s economic transformation.
The Finance Minister noted the substantial investments made by the Indian government in the past few years, which have laid a strong foundation for economic growth, particularly in manufacturing. Highlighting India's focus on capital expenditure, she pointed to the government’s significant investment in infrastructure, noting that capital expenditure has more than quadrupled from 2017-18 to the 2025-26 Budget, signaling India's robust economic expansion.
Sitharaman underscored the importance of deregulation as a catalyst for industrial growth, citing the success of the Business Reform Action Plan. The initiative, implemented by various state governments, has been instrumental in reducing compliance requirements, she noted, with over 20,000 compliance rules rationalized, business laws decriminalized, and a major push toward digitization of public services all aimed at easing the burden on businesses.
Despite global disruptions, such as the COVID-19 pandemic and banking crises, Sitharaman pointed to India’s resilience, which reflects its strong macroeconomic fundamentals and the ongoing momentum of reforms. She highlighted that India’s remarkable growth trajectory has propelled the nation from being the world’s tenth-largest economy to its fifth-largest, a significant achievement that sets the stage for future progress.
India’s ambition to become a developed nation by 2047, marking 100 years of independence, was articulated as a national mission by Sitharaman. She also quoted a report by Indiaspora and BCG, which revealed that between 2018 and 2023, Indian first-generation immigrants founded 72 unicorns valued at USD 195 billion, employing nearly 55,000 people. This speaks to the growing role of Indian-origin entrepreneurs in the global startup ecosystem.
Further emphasizing India's role in the global economy, Sitharaman highlighted the increasing presence of Global Capability Centres (GCCs) in India, especially those headquartered in the United States. These centers offer a wide range of advanced services in research and development, management consulting, and auditing, further solidifying India’s position as a global service hub.
The Finance Minister also lauded India’s achievements in building Digital Public Infrastructure (DPI), which has garnered international recognition. With over a billion digital identities created, DPI has enabled seamless access to financial services and efficient government relief disbursements during the pandemic. She highlighted how this infrastructure was instrumental in administering vaccines during the COVID-19 crisis and remains a pivotal tool in India’s ongoing development.
In her speech, Sitharaman also emphasized the crucial role of Small and Medium Enterprises (SMEs) in India’s manufacturing ecosystem. To support these enterprises, the government has introduced several initiatives, including easier access to credit, faster payments from large buyers, updated classification norms, and reduced compliance burdens. The Open Network for Digital Commerce (ONDC), launched in April 2022, has already onboarded over 764,000 vendors from 616 cities, further boosting the digital integration of SMEs.
The government’s focus will now be on reducing regulatory friction, digitizing approval processes, and integrating MSMEs into global value chains. Sitharaman also emphasized the importance of empowering women-led and rural enterprises as part of these efforts.
Lastly, Sitharaman spoke about the government’s focus on women’s economic participation, highlighting initiatives such as extended maternity leave, higher interest rates on women’s bank deposits, tax concessions for property registered in women’s names, and nutritional support for mothers through the Poshan Scheme. These measures are part of the broader effort to create an inclusive economy where women play a central role in driving growth.
The Finance Minister noted the substantial investments made by the Indian government in the past few years, which have laid a strong foundation for economic growth, particularly in manufacturing. Highlighting India's focus on capital expenditure, she pointed to the government’s significant investment in infrastructure, noting that capital expenditure has more than quadrupled from 2017-18 to the 2025-26 Budget, signaling India's robust economic expansion.
Sitharaman underscored the importance of deregulation as a catalyst for industrial growth, citing the success of the Business Reform Action Plan. The initiative, implemented by various state governments, has been instrumental in reducing compliance requirements, she noted, with over 20,000 compliance rules rationalized, business laws decriminalized, and a major push toward digitization of public services all aimed at easing the burden on businesses.
Despite global disruptions, such as the COVID-19 pandemic and banking crises, Sitharaman pointed to India’s resilience, which reflects its strong macroeconomic fundamentals and the ongoing momentum of reforms. She highlighted that India’s remarkable growth trajectory has propelled the nation from being the world’s tenth-largest economy to its fifth-largest, a significant achievement that sets the stage for future progress.
India’s ambition to become a developed nation by 2047, marking 100 years of independence, was articulated as a national mission by Sitharaman. She also quoted a report by Indiaspora and BCG, which revealed that between 2018 and 2023, Indian first-generation immigrants founded 72 unicorns valued at USD 195 billion, employing nearly 55,000 people. This speaks to the growing role of Indian-origin entrepreneurs in the global startup ecosystem.
Further emphasizing India's role in the global economy, Sitharaman highlighted the increasing presence of Global Capability Centres (GCCs) in India, especially those headquartered in the United States. These centers offer a wide range of advanced services in research and development, management consulting, and auditing, further solidifying India’s position as a global service hub.
The Finance Minister also lauded India’s achievements in building Digital Public Infrastructure (DPI), which has garnered international recognition. With over a billion digital identities created, DPI has enabled seamless access to financial services and efficient government relief disbursements during the pandemic. She highlighted how this infrastructure was instrumental in administering vaccines during the COVID-19 crisis and remains a pivotal tool in India’s ongoing development.
In her speech, Sitharaman also emphasized the crucial role of Small and Medium Enterprises (SMEs) in India’s manufacturing ecosystem. To support these enterprises, the government has introduced several initiatives, including easier access to credit, faster payments from large buyers, updated classification norms, and reduced compliance burdens. The Open Network for Digital Commerce (ONDC), launched in April 2022, has already onboarded over 764,000 vendors from 616 cities, further boosting the digital integration of SMEs.
The government’s focus will now be on reducing regulatory friction, digitizing approval processes, and integrating MSMEs into global value chains. Sitharaman also emphasized the importance of empowering women-led and rural enterprises as part of these efforts.
Lastly, Sitharaman spoke about the government’s focus on women’s economic participation, highlighting initiatives such as extended maternity leave, higher interest rates on women’s bank deposits, tax concessions for property registered in women’s names, and nutritional support for mothers through the Poshan Scheme. These measures are part of the broader effort to create an inclusive economy where women play a central role in driving growth.
