India set to become third-largest economy: FM Sitharaman

New Delhi, Nov 4 (PTI) Finance Minister Nirmala Sitharaman on Tuesday said India stands out as a fast-growing economy and will soon be the third-largest in the world.

Delivering the Diamond Jubilee Valedictory Lecture at Delhi School of Economics (DSE) here, she said India is moving fast on so many different parameters, which are largely economic.

"Of course, India and its population, India and its location have strategic significance, but India stands together today and stands tall and stands distinctly on its feet because of the economic strength of India," she said.

"What is making us literally stand out is the fast movement from the tenth largest economy in 2014 to fifth and the fourth, and now sooner, probably to the third," she said.

She emphasised that Indians should believe in themselves and the country's economic strength.

"We, as Indians contributing to the economy, must have faith that we are achieving our goals through our own efforts. We should not be swayed by those who say our economy is not up to the mark. Who can ever tell a nation of 140 crore people that we are a dead economy? It’s alright for people from outside to taunt us, but we within the country should never decry the efforts and achievements of our own people," she said.

Stressing that economic growth has been inclusive, she said, "that is why, as a country, we were able to get 25 million people out of multi-dimensional poverty. It's our own people's contribution. It's all our contribution." Speaking about the government's approach and capital expenditure-led growth model, she said, "It has a much higher multiplier effect than revenue expenditure -- and that has proven to be correct." The fact that the growth numbers are sustaining at where they are is a clear answer that the multiplier is actually doing its role, she said.

Highlighting that technology will play an important role in pushing growth, Sitharaman said, "We are at an inflection point in India - particularly when we look at our economy - with new and powerful factors coming into play, most notably the immense importance that technology is acquiring." Without technology today, land, labour, and capital would either remain idle or lose value, she said, adding that technology is essential - whether in identifying a small farmer's plot of land or in the manufacturing sector, where artificial intelligence is transforming production models at a rapid pace.

"Artificial Intelligence is here. Some fear it - wondering if it will take away jobs. But there are also those harnessing AI to create innovative solutions for long-standing challenges, whether in infrastructure, civic systems, medical devices, or beyond," she said.

She urged students to deepen India-centric research and policy engagement, and to develop models suitable for emerging economies.

"I expect the Delhi School of Economics to improve and develop better field immersion programmes - enabling students to work closely with districts, MSMEs, SHGs, and cooperatives - so they can better understand the ground realities behind data and economic analysis," she said.

Over the last 10 years, significant progress has been made in the areas of women's empowerment and upliftment, she said, adding that, at the district level, as well as through national and state policies, numerous initiatives have brought about meaningful change for women. PTI DP DRR