Sitharaman: India's Economic Momentum is Unstoppable – Ensuring Rate Cuts Reach Every Citizen
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- September 06, 2025
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In a candid and forward-looking exclusive interview, Finance Minister Nirmala Sitharaman exuded unwavering confidence in India's economic resilience, charting a clear course for growth and prosperity. Her key message? The government's laser focus has now decisively shifted to ensuring that the benefits of recent monetary policy rate cuts translate into tangible relief and opportunities for every consumer and business across the nation.
The recent, bold decision to slash corporate tax rates was not merely a fiscal adjustment but a strategic power play designed to inject robust dynamism into the economy.
This historic move, she explained, is poised to unleash a wave of fresh investment, stimulate manufacturing, and create a fertile ground for businesses to thrive, ultimately propelling India towards a high-growth trajectory. It’s a clear signal to global and domestic investors that India is open for business and ready for a significant upturn.
Addressing the critical issue of monetary policy transmission, Sitharaman made it clear that the government is not leaving it to chance.
The Reserve Bank of India's repo rate cuts are significant, and the onus is now on banks to pass these benefits to borrowers. 'Our focus is now on ensuring transmission,' she asserted, highlighting the comprehensive strategy involving public sector banks (PSBs) actively engaging in credit outreach programs.
These initiatives are designed to bridge the gap between policy intent and ground-level reality, ensuring that cheaper credit is accessible for housing, vehicles, and business expansion.
Beyond rate cuts, the Finance Minister detailed a multi-pronged approach to revitalize demand and investment.
Recognising specific sectoral headwinds, such as those faced by the automotive industry, the government is exploring targeted interventions. The push for credit disbursement through 'loan melas' and the emphasis on resolution of GST refunds are practical steps aimed at putting more liquidity and spending power back into the system, fostering a conducive environment for consumption and capital formation.
Sitharaman underscored the government's commitment to maintaining fiscal prudence while simultaneously implementing growth-oriented policies.
She highlighted that while the corporate tax cut has significant revenue implications, the long-term benefits of increased investment and economic activity are expected to outweigh these. Furthermore, she reiterated the government’s dedication to supporting export-oriented sectors and addressing liquidity concerns in non-banking financial companies (NBFCs), ensuring a holistic approach to economic well-being.
The interview painted a picture of a government actively engaged, meticulously monitoring economic indicators, and swiftly responding with decisive actions.
From empowering PSBs to enhance credit delivery to fostering an environment ripe for domestic and foreign investment, the Finance Minister's vision is one of sustained growth, job creation, and a more equitable distribution of economic benefits. India, under this renewed focus, is poised to overcome current challenges and emerge stronger.
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