On BRICS, Sitharaman said the grouping
should be viewed as a partnership aimed at improving the welfare of its people
rather than as a platform to counter any country or bloc.
·
India-US
Trade Deal: Finance Minister Nirmala Sitharaman
expressed hope that the India-US trade agreement would be concluded at the
earliest in the interests of bilateral economic ties and global trade.
·
Negotiations
Progress: Commerce Minister Piyush Goyal stated on
15 October 2026 that the first phase of the India-US trade pact had been
finalised and was undergoing legal drafting.
·
Trade
Imbalance with China: Sitharaman highlighted India’s growing
trade deficit with China and persistent restrictions on market access for
Indian products.
·
Non-Tariff
Barriers: She identified non-tariff measures,
including phytosanitary restrictions, as major obstacles to Indian exports of
generic medicines, bovine meat, vegetables and perishable goods to China.
·
Preference
for Negotiations: India has prioritised dialogue to address
trade imbalances rather than imposing punitive tariffs on trading partners.
·
BRICS
Cooperation: Sitharaman said BRICS should focus on
strengthening economic cooperation and improving public welfare rather than
countering any particular country or bloc.
·
BRICS
Economic Significance: She highlighted the
grouping’s substantial share of the global population and trade, emphasising
opportunities to expand trade, mutual understanding and economic cooperation
among member countries.
·
India’s
Economic Growth: She attributed India’s sustained growth
over the past four to five years, particularly since the COVID-19 pandemic, to
inclusive development, skill creation, fiscal prudence and higher public
capital expenditure.
·
Infrastructure
Investment: The Finance Minister said public
investment in infrastructure generates a stronger multiplier effect than
equivalent direct cash transfers, while creating jobs and stimulating economic
activity.
·
Borrowing
for Asset Creation: She defended government borrowing for
infrastructure development, stating that debt-financed asset creation had
benefited the economy.
Key Takeaway: India
is seeking an early conclusion of its trade agreement with the United States
while pressing China for better market access. The government continues to
emphasise BRICS cooperation, infrastructure-led growth and fiscal prudence.
[ABS News Service/16.10.2026]
Union
Finance Minister Nirmala Sitharaman on Friday (16.10.2026) expressed hope that
the India-US trade agreement would be concluded at the earliest, in the
interests of global trade and bilateral economic ties between the two
countries.
"I
think recently the Indian Commerce Minister has also spoken that they expect
and wish to have the agreement signed soon. Negotiations have been going on. I
hope, in the interest of global trade and in the interest of trade between the
two partners, India and US, the trade agreement gets concluded at the
earliest," she said.
Commerce
and Industry Minister Piyush Goyal said on Thursday (15.10.2026) that the first
phase of the India-US trade pact had been finalised and was undergoing legal
drafting.
On
trade with China, Sitharaman said the growing trade imbalance and persistent
restrictions on market access for Indian products remained major concerns
despite years of engagement with Beijing.
India
had consistently sought market access in China for products such as generic
medicines, bovine meat, vegetables and other perishable goods, but had made
little progress despite years of engagement, Sitharaman said during an
interaction with the Atlantic Council on the sidelines of the IMF-World Bank
annual meetings in Bangkok, Thailand.
"Non-tariff
barriers are the biggest hurdle in the trade between India and China," she
said, adding that China had used phytosanitary measures and other non-tariff
restrictions despite the potential for discussions and investigations to
resolve such issues.
She
said India had not adopted the approach of imposing punitive tariffs on trading
partners to correct large trade imbalances, preferring instead to pursue
negotiations even if the process was time-consuming.
On
BRICS, Sitharaman said the grouping should be viewed as a partnership aimed at
improving the welfare of its people rather than as a platform to counter any
country or bloc.
"I
don't think BRICS's intention is to counter others. It is more to strengthen
the partnership through the BRICS," she added.
She
noted that BRICS represented nearly 40 per cent of the world's population and
said cooperation among member countries could boost trade, foster mutual
understanding and expand economic opportunities.
With
new members joining the grouping, 11 to 12 countries were actively engaging
with one another, collectively accounting for around 45 per cent of global
trade, she said.
On
India's economic growth, Sitharaman said the country had sustained strong
growth despite global disruptions and had been the world's fastest-growing
major economy over the past four to five years, particularly since the COVID-19
pandemic.
She
attributed India's performance to inclusive growth, wider access to resources,
skill development for young people, fiscal prudence and higher public capital
expenditure.
The
finance minister said public investment in infrastructure had generated a
stronger multiplier effect than transferring equivalent amounts of money
directly to people, while also creating jobs and supporting economic activity.
Public
spending on infrastructure helped channel money to people through economic
activity without putting the same pressure on the fiscal deficit as some
alternative forms of expenditure, she said.
Sitharaman
added that government borrowing was broadly aligned with infrastructure
expenditure, arguing that debt-financed asset creation was benefiting the
economy. "Borrowing goes for asset creation, and as a result, the economy
has benefited," she said.