India's economic ambitions remain intact despite a challenging global environment, according to Revenue and Finance Secretary Tuhin Kanta Pandey. He acknowledged the worldwide slowdown in trade and growth but asserted that India is focused on accelerating its trajectory.
Dismissing concerns about inadequate infrastructure spending, Pandey underscored the government’s financial strategy. “The ₹15.48 lakh crore we are borrowing is going directly into capex,” he stated, pushing back against criticism that the government is not investing enough.
He further clarified that India’s borrowing approach is designed to be productive rather than inflationary. “We are borrowing to invest, fiscally we have an absolutely non-inflationary budget,” he said, emphasizing that the focus remains on long-term economic expansion.
Pandey also reaffirmed the government’s commitment to ensuring that India continues to hold its position as the world’s fastest-growing economy. Steps are being taken, he said, to further accelerate this growth, reinforcing the country’s vision despite external economic pressures.
This robust approach is further reinforced by the Narendra Modi government's decisive move in Budget 2025, which doubled down on massive public spending through infrastructure. With a primary focus on large connectivity projects and urban redevelopment, the government has earmarked over Rs 11.5 lakh crore for capital expenditure as a means of driving economic recovery.
Amplifying capital spending at the state level, the Centre will also establish an Urban Challenge Fund of Rs 1 lakh crore to support 25 per cent of the cost of bankable urban development projects. These measures underscore a clear and continuing focus on infrastructure as a catalyst for long-term growth.