Govt pulled 25 million people out of poverty, India to be third-largest economy soon: FM

Union Finance Minister Nirmala Sitharaman on Tuesday said that India today stands out as a fast-growing economy and will soon be the third-largest in the world.

Addressing students at the Delhi School of Economics here, the minister said India stands distinctly on its feet because of its economic strength.

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“What is making us literally stand out is the fast transition from the tenth-largest economy in 2014 to fifth and the fourth, and now sooner, probably to the third,” she said.

“I am not saying we have become a developed country yet, because Viksit Bharat 2047 lies ahead of us. What is making us stand out is the rapid progress from being the 10th-largest economy in 2014 to the 5th, soon to become the 4th, and probably the 3rd before long,” the minister added.

In another significant remark, Sitharaman mentioned that the government has been able to pull 25 million people out of multi-dimensional poverty. She also emphasised the need to strengthen India-centric research and policy engagement and develop models suited to emerging economies.

She also showed confidence in fiscal deficit, saying the government would meet the ambitious fiscal deficit target of 4.4% for the current financial year. The Centre estimates the fiscal deficit during 2025-26 at 4.4% of the GDP, or Rs 15.69 lakh crore.

As regards the banking sector, Sitharaman said the balance sheets of public sector banks have improved significantly compared to the twin balance sheet problem they faced 7-8 years ago.

The central government recorded the fiscal deficit for the first half of the financial year 2025-26 (H1FY26) at Rs 5,73,123 crore.

Recent data released by the Controller General of Accounts (CGA) said this translates to 36.5% of the Centre’s Budget Estimates (BE) for FY26. During the first six months of FY25, the fiscal deficit stood at 29% of the BE.

The CGA report said that the Centre’s total receipts up to September amounted to Rs 17,30,216 crore, or 49.5% of the BE for the year. This included Rs 12,29,370 crore from tax revenue (net to Centre), Rs 4,66,076 crore from non-tax revenue, and Rs 34,770 crore from non-debt capital receipts.