Finance Minister said India’s middle class drives growth and EU free trade deal boosts global business opportunities
NEW DELHI
Finance Minister Nirmala Sitharaman said India successfully managed the economic impact of the West Asia crisis while continuing to remain the world’s fastest-growing major economy. Speaking in an interview with the French newspaper Le Figaro, she said the country’s strong domestic demand, expanding global trade partnerships, and timely government measures helped maintain economic stability during the challenging period.
The Finance Minister said India’s growing middle class continues to drive consumption and support economic growth. She also highlighted the importance of the recently concluded free trade agreement between India and the European Union, stating that it is expected to significantly strengthen global trade and create new opportunities for businesses in both regions.
Sitharaman explained that Prime Minister Narendra Modi had appealed to citizens on May 10 to reduce unnecessary international travel, postpone gold purchases for a year, limit fuel consumption by using shared transport, and avoid excessive use of cooking oil. She said these measures were aimed at protecting the country’s economy during the crisis.
Summarising the government’s approach, the Finance Minister referred to the “three Fs”—fuel, fertiliser, and foreign exchange. She explained that reducing fuel consumption helps save valuable foreign exchange, as imports are paid for in foreign currency. Encouraging practices such as carpooling, she said, contributes to conserving foreign exchange reserves.
The Minister also said the government continued providing substantial fertiliser subsidies to protect farmers from rising costs despite the financial burden on the country. She noted that while fertiliser prices remained affordable for farmers, the government had to bear the additional cost of imports.
Speaking about gold imports, Sitharaman acknowledged the cultural and emotional importance of gold for Indian families. However, she said citizens were encouraged to delay purchases because importing gold also requires spending valuable foreign exchange reserves during difficult economic conditions.
Separately, Sitharaman participated in the India-France Economic and Financial Dialogue with French Minister Roland Lescure in Aix-en-Provence. The discussions focused on expanding cooperation in critical minerals, economic security, financial services, and industrial development. She said stronger economic ties between India and France under their strategic partnership would create new opportunities for investment, innovation, and long-term growth while further strengthening bilateral cooperation across several key sectors.
