By Nikunj Ohri
NEW DELHI (Reuters) -India’s Finance Minister Nirmala Sitharaman said on Friday that the government is committed to increasing state capital spending to support economic growth, stressing that the economy has remained resilient despite global headwinds.
“With the steady share of consumption and investment in the overall GDP over the years, India’s growth is firmly anchored in its domestic factors, which minimises the impact of external shocks on overall growth,” Sitharaman said while speaking at the Economic Conclave, organised by the finance ministry.
However, the minister cautioned against complacency, urging “quiet confidence” in making and executing the right decisions.
The United States doubled tariffs on Indian goods to as much as 50% from August 27 over New Delhi’s continued imports of Russian oil. The levy is among the highest on U.S. trading partners alongside Brazil, and economists say the move could hurt exports including textiles, leather goods and chemicals.
As part of the federal budget, India announced plans to spend a record 11.21 trillion rupees ($126.3 billion) on infrastructure for the fiscal year ending March 2026, slightly higher than the previous year.
The Indian economy expanded 7.8% year-on-year during the April-June quarter, the fastest in five quarters, from 7.4% in the previous three-month period. It is projected to grow at 6.8% for the fiscal year amid increasing concerns about the impact of U.S. tariffs.
The Reserve Bank of India kept its policy rate unchanged at 5.5% on Wednesday, while signalling room to lower rates in December as it assesses the impact of the tariffs and recent consumption tax cuts on the economy.
($1 = 88.7610 Indian rupees)
(Reporting by Nikunj Ohri,Witing by Manoj Kumar; Editing by Sonia Cheema)
