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India Hits 'Goldilocks Moment' with Strong Growth and Low Inflation: FM

Finance Minister Nirmala Sitharaman described the Union Budget 2026-27 as arriving at a rare 'Goldilocks moment' for the economy, combining strong growth with low inflation. She attributed this to sustained policy action, not chance, citing projected real GDP growth of 7.4% and inflation around 2%. The budget emphasizes self-reliance, with measures to boost manufacturing, energy security, and household purchasing power. Key initiatives include a Rs 1,000 crore outlay to create one lakh allied health professionals and a new committee aimed at capturing 10% of the global services market by 2047.

Key Points: India's 'Goldilocks' Economy: FM Sitharaman on Budget 2026-27

  • 7.4% GDP growth projected
  • Inflation softens to ~2%
  • Focus on domestic manufacturing & energy security
  • Target to create 1 lakh health professionals
  • New committee for global services market
2 min read

Union Budget marks rare 'goldilocks moment' for India's economy: FM Sitharaman

Finance Minister Nirmala Sitharaman says Union Budget capitalizes on rare economic sweet spot of high growth and low inflation, focusing on self-reliance.

Union Budget marks rare 'goldilocks moment' for India's economy: FM Sitharaman
"The Union Budget has come at a rare moment for India's economy - Nirmala Sitharaman"

New Delhi, Feb 12

Finance Minister Nirmala Sitharaman on Thursday said the Union Budget 2026-27 has come at a rare moment for India's economy, where strong growth and low inflation are being achieved together.

Speaking in the Rajya Sabha, FM Sitharaman described this phase as a 'Goldilocks moment' and said it was the result of sustained effort, careful planning and timely policy action, not chance.

"According to the first advance estimates released by the National Statistical Office, India's real GDP growth is projected at 7.4 per cent for 2025-26, while nominal growth is estimated at around 8 per cent," Finance Minister stated.

"At the same time, consumer price inflation has softened to nearly 2 per cent and has remained under control for a continuous period," she mentioned.

FM Sitharaman further stressed that atmanirbharata remains a core principle of the government's economic strategy.

"The budget focuses on building domestic manufacturing capacity and ensuring energy security, while also helping citizens become self-reliant in their own lives," FM Sitharaman explained.

"Measures aimed at improving ease of living, generating employment, raising agricultural productivity and increasing household purchasing power are all part of this approach," the Union Minister stated.

Highlighting steps to develop human capital, the Finance Minister said the government has set a target of creating one lakh allied health professionals over the next five years.

"An outlay of Rs 1,000 crore has been provided for this initiative in the current year. This move would not only create jobs but also strengthen health services and support the growth of medical tourism," the Minister highlighted.

FM Sitharaman also announced the formation of a high-powered education-to-employment and enterprise standing committee.

The committee will focus on preparing India's youth for the services sector, with the goal of capturing 10 per cent of the global services market by 2047.

"Key areas of focus will include IT, fintech, logistics, healthcare, tourism and creative services," she stated.

"The panel will work on addressing skill gaps, infrastructure needs and credit constraints, while suggesting reforms in standards, accreditation and digital regulation. This would help expand exports in areas such as artificial intelligence, cloud services and professional services, FM Sitharaman added.

- IANS

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Reader Comments

R
Rohit P
GDP growth at 7.4% and inflation at 2%? Sounds impressive on paper. But as a small business owner, I'm still waiting for the 'ease of living' to translate into easier credit and less compliance burden. The intent is good, execution is key.
A
Aditya G
Atmanirbharata in energy and manufacturing is the need of the hour. We cannot rely on other nations for critical supplies. The committee for services sector aiming for 10% global share by 2047 is a visionary goal. Let's hope it gets proper funding and follow-through.
S
Sarah B
As someone working in the tech sector, the focus on AI, cloud, and fintech exports is very encouraging. Bridging the skill gap is crucial. Hope the new committee actually engages with industry professionals and doesn't just become another bureaucratic panel.
K
Karthik V
Low inflation number is a relief for the common man's pocket. But what about fuel and vegetable prices? That's where we feel the pinch daily. The budget must ensure this 'goldilocks moment' reaches the kitchen of every Indian household.
M
Meera T
The emphasis on agricultural productivity and purchasing power is welcome. My father is a farmer in Punjab. For this 'moment' to be real, MSPs need to be assured and cost of inputs like fertilizers must be controlled. The budget speech should translate to action on the ground.

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