After the landmark Goods and Services Tax (GST) reforms that simplified the tax structure this year, the government is doing “immense work” on next-generation customs reforms, Finance Minister Nirmala Sitharaman said on Tuesday.
What did the finance minister say about customs and economic reforms?
Delivering the Valedictory Lecture at the Delhi School of Economics, Sitharaman said India stood “tall and distinctly on its feet” because of its economic strength and will soon become the third-largest economy in the world.
“I am not saying we have become a developed country yet, because Viksit Bharat 2047 lies ahead of us. What is making us stand out is the rapid progress from being the 10th-largest economy in 2014 to the 5th, soon to become the 4th, and probably the 3rd before long,” she said.
What is the fiscal roadmap for the coming years?
The finance minister reaffirmed the government’s commitment to meeting the 4.4 per cent fiscal deficit target for FY26, before shifting focus to improving the debt-to-GDP ratio from the next financial year onwards.
“Unless your economy is sound, unless your macroeconomic fundamentals are strong, you will never be able to stand up to speak,” Sitharaman said, stressing that fiscal stability underpinned India’s global credibility.
How did the minister address global perceptions of India’s economy?
Referring to “international bullying” that questions India’s economic strength, Sitharaman said, “We should have faith that we are achieving these goals ourselves and not get swayed by people who say your economy is not up to it.”
She noted that India’s progress had lifted 25 million people out of multidimensional poverty, underscoring the country’s economic resilience and reform momentum.
What did Sitharaman say about the role of technology and research?
Sitharaman called on young economists to ensure that Indian perspectives shape global economic debates and to develop theories that address the needs of India and the Global South.
“We need to have information shared so that anxieties are reduced and opportunities are seen,” she said, adding that India was at an “inflection point” marked by technological disruption.
“Technology is playing such an immense role that all of us studying the economy should factor that in. It is important that as we move forward, we engage with policymakers to provide data-driven inputs,” she said.
The minister cited the use of artificial intelligence as an example of how technology had transformed tax enforcement by improving detection of evasion.
What policy challenges did Sitharaman highlight?
The finance minister emphasised the need for research into ageing populations, urbanisation, and automation.
“With globalisation in retreat and supply chains undergoing realignment, sustaining high growth over the next two decades will no doubt be challenging. Unless younger minds come up with robust solutions to these challenges, we will not be able to keep pace with India’s development agenda,” she said.
Source from: https://www.business-standard.com/economy/news/fm-next-generation-customs-reforms-after-gst-2025-125110401612_1.html
