'Given ourselves fiscal discipline path': FM Sitharaman pitches India as investment hub to US

Union finance minister Nirmala Sitharaman, who is in Chicago as part of her official visit to the US, said India had met its fiscal consolidation target for 2025-26 and defended the government’s borrowing and debt management while addressing members of the Indian diaspora.Sitharaman is on a nine-day visit to Canada and the US from August 25 to September 2, during which she is meeting investors and business leaders and will represent India at the G20 finance ministers and central bank governors’ meeting in Asheville, North Carolina.Speaking in Chicago, she said India’s fiscal deficit had followed the consolidation path set by the government, with the deficit at 4.4 per cent of GDP in the financial year ended March 31, 2026.“We have given ourselves a fiscal discipline path on the fiscal deficit as well. We have fulfilled the trajectory. The last mile that had to be reached by 2025-26, we have reached,” Sitharaman said.She said the government has set a target of bringing the debt-to-GDP ratio down to 50 per cent by 2030, while arguing that fiscal consolidation had been achieved without compromising spending on social welfare or public capital expenditure.“The trust that the world has of the fiscal prudence of Prime Minister Modi- he was so when he was Chief Minister of Gujarat, he is so now, even when he is the Prime Minister of the country, the fiscal prudence shall not be compromised. As a result, credit ratings are improving,” she added.Sitharaman also highlighted India’s economic resilience, saying domestic growth had remained at 7 per cent or higher since the pandemic despite global disruptions, including the Russia-Ukraine war, tariff disputes and disruptions in the Strait of Hormuz.During her Chicago visit, Sitharaman also met senior executives from companies including Shield AI, Hyatt, Mondelez International, Archer Daniels Midland and Visteon, pitching India as a potential hub for global operations, technology, manufacturing and financial functions. Her meetings with US business leaders are part of the government’s broader effort to attract investment and deepen India-US economic ties.Discussions with Shield AI focused on AI-enabled autonomy, unmanned systems and next-generation defence technologies, including R&D, co-development and co-production.With ADM, Sitharaman discussed opportunities in agriculture, food, nutrition, technology and sustainable value chains, including the company’s farmer partnerships and its technology and AI capabilities in Bengaluru.Talks with Hyatt covered opportunities to expand its presence in India’s growing tourism and hospitality sector, while discussions with Mondelez focused on expanding its manufacturing, sourcing, services and export footprint.Sitharaman also discussed India’s potential as a global hub for ADM’s exports, technology and treasury operations, including through GIFT City, and highlighted improving infrastructure and connectivity in tier-II and tier-III cities.On trade, Sitharaman said India was continuing to pursue bilateral agreements with partners including the European Union, Australia, the UAE and EFTA nations, as multilateral trade negotiations have moved slowly.“So trade agreements are continuing. On a bilateral basis, we are moving with trade treaties. The multilateral treaty age has gone off,” she said.Sitharaman is scheduled to attend the G20 Finance Ministers and Central Bank Governors’ meeting in Asheville on August 31 and September 1 before travelling to New York for meetings with investors and financial-sector executives.Get the latest Business News and Live updates. Download the TOI app.