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Nirmala Sitharaman becomes longest-serving Finance Minister in India's history

Nirmala Sitharaman Etches Her Name in History as India's Longest-Serving Finance Minister

In a landmark achievement that underscores her enduring presence in India's economic landscape, Nirmala Sitharaman has officially become the longest-serving Finance Minister in the country's independent history. This milestone was reached as she completed a tenure surpassing that of Morarji Desai, who previously held the record for the longest continuous service in the role. Sitharaman's journey in the Finance Ministry began on May 31, 2019, when she was appointed by Prime Minister Narendra Modi following the Bharatiya Janata Party's (BJP) resounding victory in the 2019 general elections. Since then, she has steered the nation's fiscal policies through some of the most challenging periods, including the global COVID-19 pandemic, geopolitical tensions, and domestic economic reforms.

To fully appreciate this accomplishment, it's essential to delve into the historical context. Morarji Desai, a towering figure in Indian politics, served as Finance Minister for a total of 2,128 days across multiple stints between 1958 and 1969 under Prime Ministers Jawaharlal Nehru and Lal Bahadur Shastri. His tenure was marked by significant economic policies, including the introduction of the Gold Control Act and efforts to stabilize the economy during times of food shortages and balance-of-payments crises. Desai's record stood unchallenged for over five decades until Sitharaman eclipsed it. As of the latest count, Sitharaman has served for more than 2,128 days, with her term continuing uninterrupted since her appointment. This makes her not just the longest-serving in continuous terms but also a symbol of stability in an era of rapid political and economic changes.

Sitharaman's path to this record is as remarkable as the milestone itself. Born in Madurai, Tamil Nadu, in 1959, she pursued her education in economics, earning a Master's degree from Jawaharlal Nehru University in New Delhi. Her early career included stints in the corporate world, working with organizations like the BBC World Service and PricewaterhouseCoopers in London. Entering politics relatively late, she joined the BJP in 2006 and quickly rose through the ranks. Before becoming Finance Minister, she held portfolios such as Defence Minister from 2017 to 2019, making her the first full-time woman to head that ministry, and earlier as Minister of State for Commerce and Industry. Her appointment as Finance Minister in 2019 was historic in its own right, as she became only the second woman to hold the position after Indira Gandhi, who briefly managed the finance portfolio in 1970-71.

What sets Sitharaman's tenure apart is the breadth of challenges she has navigated. Taking office amid slowing economic growth, she inherited an economy grappling with issues like declining GDP rates, rising unemployment, and the aftermath of demonetization and GST implementation from previous years. Her first major test came with the presentation of the Union Budget in July 2019, where she introduced measures to boost foreign investment, support startups, and reform the banking sector. Notably, she ditched the traditional budget briefcase for a 'bahi-khata' – a red pouch symbolizing Indian traditions – a move that garnered widespread attention and symbolized a break from colonial-era practices.

The real crucible, however, was the COVID-19 pandemic that struck in early 2020. As the world economy ground to a halt, India faced unprecedented disruptions. Sitharaman responded with a series of stimulus packages under the Atmanirbhar Bharat (Self-Reliant India) initiative, totaling over Rs 27 lakh crore. These included direct cash transfers to vulnerable populations, credit guarantees for small businesses, and incentives for manufacturing sectors. Critics argued that the packages were insufficient in scale compared to those in developed nations, but supporters pointed to India's relatively quick recovery, with GDP growth rebounding to over 8% in subsequent quarters. Her handling of the crisis involved close coordination with the Reserve Bank of India, leading to measures like moratoriums on loan repayments and liquidity infusions to prevent a banking collapse.

Beyond the pandemic, Sitharaman's tenure has been defined by bold structural reforms. One of the most significant was the introduction of the Insolvency and Bankruptcy Code amendments, which streamlined debt resolution processes and helped recover substantial amounts from non-performing assets. She has also pushed for privatization of public sector enterprises, including the ambitious disinvestment of Air India, which was successfully handed over to the Tata Group in 2022 after decades of losses. In the realm of taxation, her budgets have focused on simplifying compliance, reducing corporate tax rates to attract investment, and promoting digital payments to formalize the economy. The 2023-24 Budget, for instance, emphasized capital expenditure with a record allocation of Rs 10 lakh crore for infrastructure, aiming to create jobs and spur long-term growth.

Sitharaman's approach to fiscal policy has often been characterized by a blend of pragmatism and ambition. She has maintained fiscal discipline, targeting a reduction in the fiscal deficit from pandemic highs of over 9% of GDP to around 5.9% in the latest estimates. This has involved tough decisions, such as rationalizing subsidies and increasing excise duties on fuel, which drew public ire amid rising inflation. Yet, her strategies have contributed to India's emergence as one of the fastest-growing major economies, with projections from the International Monetary Fund placing India's growth at 6.8% for 2024, outpacing many peers.

Comparisons with predecessors are inevitable. While Desai's era was about post-independence stabilization, Sitharaman operates in a globalized, digital age. Unlike Manmohan Singh, who as Finance Minister in 1991 liberalized the economy, Sitharaman's reforms build on that foundation, focusing on inclusivity through schemes like PM-KISAN for farmers and Ayushman Bharat for healthcare. Her tenure has also seen India's rise in global indices, such as the Ease of Doing Business ranking, improving from 142nd in 2014 to 63rd by 2020, though progress has plateaued recently.

Politically, Sitharaman's longevity reflects the stability of the Modi government, which secured a third term in 2024, albeit with a reduced majority. As part of the National Democratic Alliance (NDA), she continues to hold the finance portfolio, along with corporate affairs. This extended service allows her to implement long-term visions, such as the goal of making India a $5 trillion economy by 2025-26, a target delayed by the pandemic but still pursued aggressively.

Critics, however, point to persistent issues like income inequality, rural distress, and youth unemployment, arguing that growth has not been inclusive enough. The opposition has often accused her of favoring big businesses over the common man, citing examples like the farm laws (later repealed) and delays in job creation. Despite these, Sitharaman's resilience is evident in her parliamentary debates, where she defends policies with data-driven arguments and a calm demeanor.

Looking ahead, as Sitharaman's tenure extends further, her legacy will likely be judged on how well India weathers ongoing global uncertainties, such as supply chain disruptions from the Russia-Ukraine conflict and potential recessions in major economies. Initiatives like the Production Linked Incentive (PLI) scheme for sectors like electronics and pharmaceuticals aim to position India as a manufacturing hub, reducing dependence on China.

In conclusion, Nirmala Sitharaman's record-breaking stint as Finance Minister is more than a statistical achievement; it's a testament to her strategic acumen and the evolving role of women in Indian leadership. From navigating crises to fostering reforms, she has left an indelible mark on India's economic narrative. As the nation progresses towards its centenary of independence in 2047, her contributions will undoubtedly shape the path forward, inspiring future generations of policymakers. This milestone not only honors her dedication but also highlights the importance of sustained leadership in achieving economic resilience and prosperity. (Word count: 1,048)

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