India hits 2025-26 deficit goal, boosting credit outlook, says Finance Minister

During a address in Chicago, Finance Minister Nirmala Sitharaman confirmed that India met its fiscal deficit objective for the 2025-26 fiscal year, posting a shortfall of 4.4% of GDP, equivalent to Rs 15.19 trillion, which aligns with the revised estimate released in February. She reiterated the government's commitment to a debt-to-GDP ceiling of 50% by 2030, contrasting India's target with advanced economies that carry debt levels above 200% of GDP.

Sitharaman attributed rising credit ratings to sustained fiscal prudence under Prime Minister Narendra Modi, emphasizing that the achievement did not require cuts to social-welfare programs or public-infrastructure spending. She also cited strong post-pandemic growth of at least 7% and detailed measures to secure fertilizer supplies and subsidise soaring international urea prices. Additionally, she outlined ongoing bilateral trade negotiations with the European Union, Australia, the UAE and EFTA nations, and noted her upcoming participation in G20 finance meetings in Asheville, North Carolina, following dialogues in Canada.