'In PM Modi's third term, India will be the world's third largest economy'

Two days after presenting her sixth budget, an interim one ahead of the 2024 national elections this summer, Union finance minister Nirmala Sitharaman sat down with journalists from Hindustan Times and Mint to discuss various aspects of the interim budget, and the state of the economy.

- Rajeev Jayaswal

Referring to the four caste groups she mentioned in her speech on Thursdaywomen, young people, farmers, and the poor and repeatedly evoking the narrative of a Viksit Bharat (developed India) by 2047, the finance minister spoke about her government's immediate and long-term priorities.

Criticising the United Progressive Alliance for wasting a decade (2004-14), acknowledging the challenge of Covid-19, where India steered clear of the playbook of western economies that were pumping cash into the system and, instead, launched a large campaign built around enterprise and self-reliance, and speaking of the clear-headed leadership of Prime Minister Narendra Modi, Sitharaman answered a range of questions about the budget as well as the economy. Edited excerpts:

The Modi government put the Indian economy on the growth path in its first term. In the second term, it made the economy more inclusive and focused on a saturation of welfare services.

What should people expect in the third term? 

The Prime Minister has already said that in the third term we will become the world's third largest economy. So, everything that is required to do so that we reach the third biggest economy level, will be done. That's the third term. But you may want to add that the second term saw a pandemic like was never seen before. Despite that, with reforms and with every inclusive measure the economy has been brought to the level of fifth largest (now).

Multidimensional poverty numbers are impressive. Even the IMF is saying that India is a bright spot. But, private consumption, which is roughly 60% of GDP, the single biggest chunk, that according to the first advance estimates is likely to grow only at 4.5%, 4.3%. Does that concern you? What is your assessment?