'Reform Express' to drive growth amid global headwinds: Sitharaman

Union Finance Minister Nirmala Sitharaman on Friday reaffirmed the government's commitment to pursuing economic reforms to sustain India's growth momentum despite an increasingly uncertain global environment, following the Reserve Bank of India's decision to lower its growth forecast for FY27.The RBI revised its GDP growth projection for FY27 to 6.6 per cent from 6.9 per cent estimated earlier in April, citing elevated energy and commodity prices as well as ongoing supply chain disruptions linked to tensions in West Asia.
Responding to the broader economic outlook, Sitharaman said the government would continue advancing reforms aimed at strengthening the economy and supporting long-term growth.
"Our government, led by Hon'ble PM Shri Narendra Modi, is committed to further drive the Reform Express with decisive policy measures to ensure positive economic momentum amidst the global challenges," the finance minister said in a post on X.

Real GDP has been estimated to grow by 7.7% in FY 2025-26 (PE)
Real GVA has grown by 7.9% in FY 2025-26. (PE)

Real GDP and Real GVA have been estimated to grow by 7.8% and 7.9%, respectively, in Q4 of FY 2025-26. (PE)

Notably, Manufacturing, Trade, Repair, Hotels, Transport,…

— Nirmala Sitharaman (@nsitharaman) June 5, 2026

Despite external uncertainties, the government highlighted India's strong economic performance in FY26. According to provisional estimates, real GDP grew 7.7 per cent during the fiscal year, while real Gross Value Added (GVA) expanded 7.9 per cent.The economy maintained its momentum in the final quarter of FY26, with real GDP and real GVA estimated to have grown 7.8 per cent and 7.9 per cent, respectively, during the January-March period.
Several key sectors recorded robust expansion during the year. Manufacturing, trade, repair, hotels, transport, communication and broadcasting-related services, storage, and financial, real estate and professional services registered double-digit growth rates at both constant and current prices, reflecting broad-based economic strength.In a separate move aimed at attracting foreign investment and supporting financial market stability, the government on Friday exempted foreign investors from income tax on interest income and capital gains arising from investments in government securities.
According to information,the exemption was introduced through an ordinance amending the Income Tax Act, according to a gazette notification issued on June 5. The measure will take effect from April 1 and apply to interest income and capital gains earned by foreign portfolio investors (FPIs) from government securities on or after that date.The tax relief is expected to enhance the attractiveness of Indian government bonds for overseas investors, boost capital inflows and help ease pressure on the rupee at a time when global financial markets remain volatile.

(Business Correspondent)