India Is Not A Dead Economy & Finance Minister Nirmala Sitharaman Proved It With Figures | Exclusive

Last Updated:September 05, 2025, 18:30 IST

During an exclusive interview with CNN-News18, FM Nirmala Sitharaman's answers, substantiated by the work, facts and figures, clearly proved that India is not a dead economy

FM Nirmala Sitharaman said inflation was drastically coming down. (PTI File)

When asked to respond to United States (US) President Donald Trump’s “India is a dead economy", Finance Minister Nirmala Sitharaman, in an exclusive interview with Network18 Group Editor-in-Chief Rahul Joshi, refused to comment on him, instead questioning the Opposition and naysayers within the country.

“I may not be able to comment on let’s say a foreign head of the state commenting on it…It is the cynics and naysayers within India who worry me…India requires its citizens to be respected. They are toiling and struggling and working to build their families and wealth. At this time, we are trying to create more opportunities. Do we need naysayers to borrow such observations, be as it may it coming for a head of state. It is undermining not the government, the citizens’ efforts. A responsible opposition would not repeat such a statement," said the FM

But throughout the interview, Sitharaman’s answers, substantiated by the work, facts and figures, clearly proved that India is not a dead economy.

GST reforms and how they will help: The GST Council has approved a new two-slab structure, scrapping the 12% and 28% brackets, easing rates on essentials, and imposing higher levies on select products. “Ninety-nine percent of all the goods and services, which are touched by GST, are now either in 0 or in five or in 18. There’s nothing beyond. So, that 1% is what makes for the demerit goods, which is popularly known as sin goods. So, that is the extent to which we have cleansed the system of anomalies, doubts, duplications and any interpretative issues," said the FM.

GDP up, inflation down: While Joshi mentioned Q1 GDP number at 7.8% and drop in inflation, the FM added the latter was “drastically coming down". When asked how the US tariffs would impact the GDP, with estimates from various consultancies, hinting from 10 basis points all the way to 100 basis points, the FM said, with a reform like the GST, many of that should be offset. “This one you have the GST reforms which is going to make people understand that they can fetch more things with the same amount of money with which they bought some amount earlier. So it is very clear that industries have been speaking about the tariff and its impact. The government has designed something for itself," said the FM.

No impact on Capex, fiscal deficit: Sitharaman said the government’s capital expenditure (capex) or fiscal deficit will not be impacted by the latest GST rate rationalisation. “At this moment, I can say with confidence that capital expenditure of the government will not come down. It will be completed as stated in the budgetary planning time, the budget estimate time, and so will the fiscal deficit. And, this is the last point of my gliding path. I will adhere to it," the FM said.

More money, Rupee strength: The FM, in the interview with CNN-News18, explained how citizens now have more money. “Through the income tax cut, the rates are coming down. The citizen now has a choice to meet his aspirations and his expectations. He cannot say, “Look, I have the money because the income tax is reduced, but these items are beyond my affordability." Now, everything has come down," she said.

Sitharaman said it is only against the dollar that the rupee is highly volatile, whereas the rupee is not affected similarly against other currencies. She added that the issue is related to the volatility as a result of the strengthening dollar.

Relief from US tariffs: The FM said the Centre is looking at a package to help those hit by US tariffs. “There is a package which consists of very many different ways in which we want to help them. So we will wait for the cabinet to clear it. But there is something coming to help them, so that this tirade of the tariff is something which they can face and also suddenly having to look for newer markets is also a challenge, but we’ll have to help them out on that. We hope not but we really can’t leave our exporters high and dry, saying its going to change sooner. We will work with them," she said.

What next? Even before the 2024 elections, a lot of work has been done on the next phase of reforms, said the FM. “The third layer of India’s democracy, the urban local bodies and the panchayats, is where the next forceful action has to move…I think we have to take the reform agenda just not to the states, but also to the third layer," Sitharaman said.

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