Policy stability needed for India's ascent: Sitharaman

Political stability and policy consistency can pave the way for India’s ascent to becoming the third-largest economy at a time of geopolitical uncertainties and risks to economic growth, finance minister Nirmala Sitharaman said on Thursday.

- Gireesh Chandra Prasad

India is the world’s fifth-largest economy after the US, China, Japan and Germany.

Political flip-flops or coalition constraints could impair the nation’s economic performance and hinder macroeconomic stability, Sitharaman said at the annual day celebrations of Shri Ram College of Commerce in the capital.

Sitharaman’s emphasis on political stability and the economic progress achieved under the current leadership comes as crucial national elections are due by May next year. Prime Minister Narendra Modi is seeking a third term for his government in 2024.

The finance minister noted global uncertainties around food and fertilizer supplies because of supply chain disruptions arising from the ongoing conflict in Eastern Europe.