FTAs-driven exports behind India's recent growth upgrades by global agencies: Jayant Sinha

Former Union Minister of State for Finance, Jayant Sinha, has attributed India's strong economic growth partly to robust export performance, saying free trade agreements (FTAs) with the UK, European Union, UAE and other countries, along with currency advantage, are strengthening the country's export engine and supporting job creation.

Former Union Minister of State for Finance, Jayant Sinha, has attributed India's strong economic growth partly to robust export performance, saying free trade agreements (FTAs) with the UK, European Union, UAE and other countries, along with currency advantage, are strengthening the country's export engine and supporting job creation. Speaking to the media on the sidelines of the 'Pathways to Viksit Bharat' event in Delhi, Sinha said India's growth projections had been upgraded by agencies around the world, with strong exports contributing to the country's economic performance.

"Part of the reason why our growth rate has been as strong as it has been, and it has in fact been upgraded by agencies around the world, is because our exports are growing strongly," Sinha said. He attributed the strong export performance to recent trade agreements and the rupee's depreciation, which he said were helping improve India's export momentum.

"And that is entirely due to both the FTAs that have happened, as well as the fact that the rupee also is somewhat weaker. This is really strengthening our export engine, and that is helping our growth and job creation for all of our people," he said. Sinha described the trade agreements signed with the UK, the European Union, the UAE and other countries as "absolute game changers" for the Indian economy.

The agreements are expected to open up trade opportunities for Indian businesses by improving access to overseas markets. His remarks come amid a broader focus on strengthening India's export capacity and creating employment opportunities through greater integration with global markets.

Recently, several prominent international organisations have upgraded India's GDP growth forecast for the 2026–27 fiscal year to approximately 7 per cent or higher, bucking a sluggish global trend. Leading the momentum, the International Monetary Fund (IMF) raised its projection by 0.6 percentage points to 7 per cent, while the World Bank and the Organisation for Economic Co-operation and Development (OECD) hiked theirs to 7.1 per cent. Concurrently, the Asian Development Bank (ADB), S&P Global, and Moody's Ratings all bumped their forecasts to 7 per cent.

On India's growth-inflation balance, Sinha commended the government and the Reserve Bank of India (RBI) for sustaining economic growth while keeping inflation at a modest level despite price pressures in the global economy. "The government as well as the Reserve Bank of India has to be commended for the wonderful work that they've done in terms of sustaining India's very robust growth rate," he said.

Referring to the International Monetary Fund's growth outlook, Sinha said the multilateral institution had suggested that India's growth would be 7 per cent going forward. He added that the RBI was closely monitoring inflation and had already taken action at its latest Monetary Policy Committee meeting.

"They are very watchful and vigilant as far as inflation is concerned," Sinha said, adding that both the government and the central bank were managing the growth-inflation trade-off effectively. (ANI)