Forged in Fire

The boss of the finance ministry took charge during a challenging period. She has managed to steer the economy towards growth and fiscal consolidation

- Parth Singh

In a televised address at the peak of the Covid-19 pandemic in 2020, Prime Minister Narendra Modi delivered a stark message: “India is at a stage of the pandemic where our actions will decide our future.” It was a moment of national anxiety, not just for the millions confined to their homes, but for an economy staring at an impending crisis. For Nirmala Sitharaman, less than a year into her role as Union finance minister, it was nothing short of a trial by fire.

Four years later, she stands at the helm, forged in that fire and facing fewer doubters. The National Democratic Alliance (NDA), having renewed its mandate with the help of its allies, chose once again to entrust her with the nation’s finances—a testament to the belief that India’s economy is steadier, and perhaps safer, in her hands.

India’s economic profile today appears far more robust than it did a decade ago, despite a once-in-a-century crisis along the way. The country is on a growth trajectory that, in the aftermath of the pandemic, many economists had deemed improbable.

The resurgence has been brought about by fiscal policies that Sitharaman shaped in the seven consecutive, record-breaking budgets she has presented in Parliament.

Taking the Reins

Signs of a slowdown were evident before the pandemic when India’s growth rate plunged 6.6% in 2020-21. With private sector players slashing investments to protect profits, the country needed a finance minister to take decisive charge.