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FM Sitharaman at KEC 2025: India needs 8% GDP growth to reach Viksit Bharat by 2047 - BusinessToday

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  Published in Business and Finance on Friday, October 3rd 2025 at 2:30 GMT by Business Today
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Finance Minister Sitharaman Urges an 8 % Growth Target at KEC 2025 to Realise “Viksit Bharat” by 2047

On the sidelines of the KEC 2025 conference in Mumbai, Finance Minister Nirmala Sitharaman delivered a pointed reminder that India’s ambitions for a “developed” future hinge on a sustained 8 % per‑annum growth trajectory. The KEC (Kolkata Economic Council) event – a high‑profile platform for business leaders, policymakers and academics – attracted over 5,000 delegates from 60 countries, underscoring the global appetite for India’s next phase of economic transformation.

The “Viksit Bharat” Imperative

Sitharaman opened by framing the 2047 target—India’s 75th independence anniversary—as a national aspiration rather than a distant wish. The minister referenced the “Viksit Bharat” concept that has appeared in several policy papers, including the Government’s National Development Agenda, where the objective is to lift India to the ranks of a high‑income economy, achieving a per‑capita income of USD 12,000 and a $10 trillion GDP. “To move from where we are today to that vision, the growth engine must run at least 8 % every year,” she insisted, echoing the centrality of this figure in the latest Budget 2024‑25.

The figure is anchored in a 2024 RBI report that projects an 8.5 % GDP growth for FY24‑25, conditional on a return to pre‑pandemic investment patterns. The minister added that India must simultaneously keep fiscal consolidation on track—cutting the fiscal deficit to 4 % of GDP by FY26—while preserving the fiscal space needed for structural reforms.

KEC 2025 Themes and Key Takeaways

The KEC conference itself, hosted by the Indian School of Business, ran from 10–12 October. The agenda was broad, but the central pillars were:

1. Digital Economy and FinTech – Sessions on expanding digital payments, e‑commerce, and the role of fintech in financial inclusion. Sitharaman highlighted the recent push to expand the Unified Payments Interface (UPI) ecosystem, noting that over 600 million UPI users now transact daily.

2. Green Growth – The minister emphasized India’s commitment to the National Hydrogen Mission and the Clean Energy Fund. She stressed that a decarbonised economy must still support robust growth, and that renewable projects are poised to create over 2 million jobs by 2030.

3. Manufacturing and MSME – The minister reiterated the Manufacturing (Reform and Creation of Enterprises) Act, which aims to raise the manufacturing share of GDP to 25 % by 2030. The policy package includes a “Make in India 2.0” initiative to streamline approvals and provide incentives for high‑tech manufacturing.

4. Infrastructure and Connectivity – A dedicated track on “Infrastructure 2030” outlined plans to boost spending to 6 % of GDP, including projects in highways, railways, ports, and digital broadband.

5. Foreign Direct Investment (FDI) – The minister underscored a target of $200–$250 bn in FDI annually, noting the “single-window clearance” reforms that have already attracted $20 bn of foreign investment in the last fiscal quarter.

The conference also hosted a panel discussion on the “Future of Work,” where experts highlighted the growing need for up‑skilling in areas such as artificial intelligence, data analytics, and renewable energy technologies. Sitharaman called for an expansion of the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) to accommodate 5 million new entrants over the next five years.

Economic Context and Challenges

India’s GDP growth slowed to 6.4 % in FY24, largely due to high inflation and a weaker global demand environment. The RBI’s March 2025 policy statement projected a rebound to 7 % in FY25, contingent upon the policy mix the government plans to implement. The 8 % target, therefore, is not merely aspirational but a policy benchmark that will drive a series of reforms.

Key challenges identified by Sitharaman included:

• Debt‑to‑GDP Ratio: Currently at 70 %, the government must keep the debt trajectory under control without stalling investment. The Finance Ministry’s “Debt Management Strategy” proposes a gradual reduction in the deficit over the next decade.

• Infrastructure Gaps: The government’s Infrastructure Convergence Programme (ICP) seeks to harmonise projects across central, state, and private sectors, but implementation delays remain a risk.

• Skilling and Employment: With a population of over 1.4 billion, India’s demographic dividend will only be realized if 30 % of the workforce can be effectively employed in productive sectors.

• Climate Constraints: The National Action Plan on Climate Change (NAPCC) calls for a 35 % reduction in carbon intensity by 2030, which will require a re‑orientation of industrial policy.

Policy Levers Highlighted by Sitharaman

1. Tax Reforms: Continuing the path of tax rationalisation, the Finance Ministry is slated to reduce the Corporate Tax rate to 22 % (including a 9 % surcharge) for firms with turnover up to ₹25 cr, and 25 % for larger firms, subject to compliance. The GST framework will see an upcoming consolidation of the 28 tax slabs into 12, streamlining compliance.

2. Capital Markets: The RBI’s “Digital Asset Regulatory Framework” will allow regulated tokenized trading on Indian exchanges, aiming to tap a nascent $200 bn digital assets market.

3. Public Sector Reforms: The Ministry has proposed a “Public Sector Credit Rating” system, which will enforce a 3 % asset‑to‑capital ratio for public sector banks.

4. Innovation Fund: The government plans to set up a $10 bn Innovation Fund to support early‑stage startups in emerging tech clusters such as Bengaluru, Hyderabad, and Chennai.

Looking Ahead

Sitharaman’s speech at KEC 2025 was widely regarded as a policy manifesto for India’s 2047 aspirations. The emphasis on an 8 % growth benchmark sets a quantifiable target that will shape fiscal decisions, investment priorities, and structural reforms in the coming decade.

The conference’s concluding remark echoed the minister’s tone: “India is not just a country of dreams; it is a country of opportunity. It is our responsibility—government, industry, and society—to build the machinery that will turn those opportunities into realities.” With the KEC 2025 platform serving as a launchpad, the next 25 years promise to be a crucible of change, innovation, and relentless growth.