India fastest growing economy, no ‘dead economy’ gets credit rating upgrade: FM Sitharaman

New Delhi, Dec 15 (IANS) While the global growth is 3.2 per cent, India is growing at 8.2 per cent, becoming the fastest growing major economy and every global institution is raising their growth outlook for the country in current fiscal (FY26), Finance Minister Nirmala Sitharaman told Parliament on Monday.

Stressing that no “dead economy gets a credit rating upgrade,” she further stated that India got rating upgrades from three major global agencies — Morningstar DBRS, S&P and R&I.

“IMF’s Chief Kristalina Georgieva said recently ‘I’m very big on India because of the boldness of their reforms… India has proven the naysayers wrong’,” FM Sitharaman told the House.

Despite Covid-19, a once in a century pandemic, India has remained the fastest growing major economy continuously for three-four years.

“Is it not something that the people of India should be recognised for India had to deal with high twin deficits – both fiscal deficit, which was 4.9 per cent in FY13, and current account deficit (CAD), which was 4.8 per cent in FY13. WPI inflation in food articles averaged 12.2 per cent annually in the five years ending 2013-14,” she mentioned.

She further stated that India has emerged as a net exporter in sectors such as electronics, pharmaceuticals, engineering goods and defence.

“In 2014-15, the production of electronics good was Rs 1.9 lakh crore. In 2024-25, it is Rs 11.3 lakh crore. In 2014-15, exports of electronics goods was Rs 38,000 crore. In 2024-25, it is Rs 3.27 lakh crore. In 2014-15, there were 2 Mobile manufacturing units. In 2024-25, it has increased to 300,” said Finance Minister.

Actual household consumption shows that the Bottom 40 per cent (B40) of the population is acquiring wealth and assets at a significantly faster rate than the Top 20 per cent (T20), she said.

“Inequality in asset ownership has massively declined, particularly in urban areas where the disparity for key assets like motor vehicles and refrigerators has shrunk dramatically. The Rural Poor have experienced a significant growth in purchasing power,” FM Sitharaman mentioned, adding that growth over the last decade has been broad-based.

—IANS

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