The country's Finance Minister Nirmala Sitharaman has expressed a very big and surprising confidence regarding India's economy. He has said with full conviction that India has such a strong potential that it can achieve an economic growth rate of more than 10% in the coming times. However, to reach this milestone, the country will have to rapidly adopt technology, innovation and new technologies in different sectors of the economy. This statement of the Finance Minister has come at a time when the eyes of the whole world are fixed on India regarding the country's economic progress. Let us know what is the special strategy of the government to achieve this goal and what is the current economic situation of the country saying.
Biggest emphasis on technology and innovation
Finance Minister Sitharaman has especially emphasized that the role of technology and innovation will be most important in increasing India's economic strength manifold. He also openly mentioned the expansion of the startup ecosystem that has emerged rapidly in the country after 2015. According to him, the use of new technology should not be limited only to the IT sector, but it is very important to extend its scope to agriculture and other traditional sectors.
Use of technology in farming will increase productivity
The Finance Minister has described the use of modern technology in the agriculture sector as a game-changer. He believes that the productivity of farming can be increased to a great extent through modern technical means, which will improve the income of farmers and their development opportunities. This will help in connecting a large part of the country's economy to the mainstream of development.
What is the current condition of India's economic growth?
According to data released by the government in February 2026, India's real GDP growth was estimated to be 7.4% during the financial year 2025-26. On the other hand, in the budget for the financial year 2026-27, nominal GDP growth is expected to be 10%. According to government data, the country's services sector grew at a robust pace of 9.1%, while the manufacturing and construction sectors were also projected to grow at a strong 7%.
Domestic demand becomes the real strength of the country's economy
Domestic demand of our country has always played a very important role in India's economic growth. Private final consumption expenditure (PFCE) was projected to grow by 7% in FY 2026 and its share in GDP was said to be 61.5%. Additionally, investment activity in the country also remained strong and gross fixed capital formation (GFCF) was projected to grow at a robust 7.8%.
However, if we look at the Economic Survey 2025-26, real GDP growth for FY 2026-27 was estimated between 6.8% to 7.2% and India's potential growth rate was pegged at around 7%. In such a situation, this target of achieving growth of more than 10% by the Finance Minister is much above the current estimates and a big ambitious step.
What is necessary to achieve growth of more than 10%?
The main focus of this entire statement of Nirmala Sitharaman is to take the country's productivity to the sky on the basis of technology and innovation. Apart from this, India will have to expand continuously and rapidly in various key sectors like manufacturing, services, agriculture, startups and investment. The government has earlier also counted public investment, digital transformation, labor reforms and formalization of the economy as the biggest and strongest bases of high growth rate.