Reforms over 11 years reshaped India's economy: FM

New Delhi

Finance Minister Nirmala Sitharaman said on Saturday that structural reforms over the past 11 years under Prime Minister Narendra Modi’s leadership have reshaped India’s macroeconomic foundation. Writing in a media article, she highlighted how India's transition from a twin-deficit problem to a five-balance sheet advantage has strengthened key sectors—banks, corporates, households, government, and external trade—contributing to the nation’s position as the world’s fastest-growing major economy.

Reflecting on 2014, she said the government’s first priority was to revive growth, as India was then part of the ‘Fragile Five’ economies. Key reforms followed, including GST, IBC, and RERA, along with pandemic-era schemes like PLI and ECLGS to support MSMEs. Infrastructure development, neglected earlier, was given renewed focus.

She also emphasized the success of the digital economy, citing the UPI payment system that recorded over 185 billion transactions in FY25, and the MUDRA loan initiative, which disbursed over Rs 33 lakh crore to more than 53 crore accounts, highlighting growing entrepreneurial spirit.

The minister noted that this transformation was possible due to governance based on trust, reduced regulatory burden, and expanded access to public goods. Supporting this view, Commerce Minister Piyush Goyal recently stated that India’s FDI now comes from 112 countries, up from 89 in 2013–14. He called this rise in foreign investment a sign of global confidence, crediting it to clear policies, bold reforms, and India’s growing economic strength.