Sitharaman Says India Can Achieve Over 10% Economic Growth

BENGALURU, Sept 26 : India can achieve economic growth of more than 10 per cent, but reaching that level will require sustained efforts across sectors, with startups, technology, innovation and agriculture playing a key role, Union Finance Minister Nirmala Sitharaman said on Saturday.

Addressing the IIT Madras Alumni Association's Sangam 2026 in Bengaluru, Sitharaman said, “It is possible to reach 10 plus growth,” while stressing that higher growth would require greater participation from all stakeholders.

She said stronger economic growth would also accelerate India's progress towards Atmanirbhar Bharat and Viksit Bharat. According to her, India has considerable scope to expand growth by creating new opportunities for talent and technology and applying innovative solutions to persistent economic challenges.

Sitharaman highlighted the rapid expansion of India's startup ecosystem, saying startups could make a significantly larger contribution to the economy in the coming years.

She also emphasised the potential of technology-driven interventions in agriculture. Drones, geospatial technology and other digital tools, she said, could improve farm productivity, connect farmers with markets and speed up various stages of agricultural operations.

Technology could also help address underemployment in agriculture by raising productivity and training workers to operate new tools, she added.

The Finance Minister said India's economic transformation over the past decade was the result of deliberate policy interventions rather than an automatic process. Recalling India's earlier position among the “Fragile Five” economies, she said the government had focused on identifying sectors requiring immediate attention, restoring confidence in institutions and opening more sectors to private participation.

She cited banking sector reforms and the infusion of resources to strengthen banks as important measures taken to rebuild institutional confidence.

Sitharaman also pointed to the opening up of sectors that were earlier restricted to private participation, with the space sector being a prominent example. The move, she said, had led to the emergence of several startups working on satellites and other space technologies, with Indian capabilities gaining increasing global recognition.

Renewable energy, nuclear technology, artificial intelligence and other emerging sectors, she said, could play an important role in India's next phase of economic expansion.

On artificial intelligence, Sitharaman said India's progress should not be assessed only by the number of AI companies listed on stock exchanges, noting that several startups and unicorns were already active in the sector. She, however, encouraged successful AI companies to consider listing as they expand, saying a stronger presence of such companies in the stock market could enhance the global visibility of India's technology ecosystem.

She further said stakeholder consultation had become an important part of policymaking, with the government seeking inputs from industry and other stakeholders while formulating solutions.

“Effort is required, effort was put in, effort is continuing to be put,” Sitharaman said, emphasising that India's growth strategy involved multiple sectors and participants across the economy.