New Delhi: Union Minister for Finance & Corporate Affairs, Smt. Nirmala Sitharaman, emphasized the strategic significance of the recently announced India-Middle East-Europe Economic Corridor, describing it as a game-changer for India and the global economic landscape. While presenting the Interim Budget 2024-25 in Parliament, she quoted Prime Minister Shri Narendra Modi, who asserted that the corridor would serve as the foundation of world trade for centuries, with its initiation on Indian soil becoming a historical milestone.
Against the backdrop of complex and challenging global geopolitics marked by wars and conflicts, Minister Sitharaman highlighted the evolving nature of globalization. She pointed to the redefinition of global dynamics with reshoring and friend-shoring, disruptions and fragmentation of supply chains, and heightened competition for critical minerals and technologies. The Finance Minister noted that a new world order is taking shape post the COVID-19 pandemic.
Smt. Sitharaman underscored India’s leadership as it assumed the G20 Presidency during a challenging global scenario. She outlined the global economic challenges, including high inflation, interest rates, low growth, significant public debt, sluggish trade growth, and climate concerns. Amidst these challenges, India successfully navigated its way, providing solutions and consensus-building on global issues.
The Finance Minister acknowledged India’s robust performance in attracting Foreign Direct Investment (FDI), noting that the FDI inflow from 2014 to 2023 reached USD 596 billion, marking a golden era and doubling the inflow recorded during 2005-2014. To encourage sustained foreign investment, she announced ongoing negotiations for bilateral investment treaties with foreign partners, guided by the principle of ‘first develop India.’
The Interim Budget presentation reflected the government’s commitment to positioning India as a key player in the global economic landscape and leveraging strategic initiatives like the India-Middle East-Europe Economic Corridor to drive economic growth and development. The Finance Minister’s remarks underscored India’s proactive role in addressing global challenges and shaping the course of international economic dynamics.