FM says economic reforms to continue, refers to India’s ‘Goldilocks situation’: Report

India’s economy continues to show resilience even as global uncertainties mount. Referring to a recent assessment by the Finance Ministry, FM Nirmala Sitharaman told The Economic Times that India is currently in a “Goldilocks situation” — with stable growth, controlled inflation, and rising private investment activity. She attributed this balance to over a decade of sustained policy reforms.Her comments come amid broader signals of resilience from the Reserve Bank of India (RBI), which, in its June bulletin, highlighted strong domestic momentum despite global economic disruptions.According to Sitharaman’s remarks to The Economic Times, India Inc is starting to invest again, with companies actively approaching banks for credit. High-frequency indicators such as e-way bill generation and sustained expansion in the Purchasing Managers’ Index (PMI) reflect continued strength in business activity.The RBI, in its June bulletin, also observed that industry and services sectors remain robust, supported by strong urban demand and an uptick in investment activity. It noted that India’s growth trajectory remains resilient even as the global economy navigates volatility due to trade frictions and geopolitical events.The Finance Minister told The Economic Times that simplification of the Goods and Services Tax (GST) and Income Tax is a priority for the government. She said that “a lot of work” has already been done post-Budget on GST reforms, and the government “hopes to complete it soon.”On the banking front, Sitharaman said the privatisation of IDBI Bank is expected to be completed in 2024. She also mentioned that a decision on new bank licences is likely to be taken “in a reasonable time,” reflecting continued emphasis on improving financial sector competitiveness (The Economic Times).Meanwhile, the RBI’s June bulletin flagged that the global economy is in a “state of flux,” citing geoeconomic fragmentation, monetary tightening, and trade imbalances. However, it maintained that India is well-placed to navigate these challenges due to its macroeconomic stability and proactive policy actions.The Finance Ministry also highlighted in its June review that while domestic conditions remain favourable, external risks such as softening global demand, financial market volatility, and geopolitical tensions could pose downside risks to growth.First Published: Jun 30, 2025 10:48 AM IST

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