Sitharaman Says India Will Hold 7% Growth Despite Hormuz, War Risks
· Business · Hindustan Times, Moneycontrol
Finance minister Nirmala Sitharaman told the Indian diaspora in Chicago that India's economy will sustain 7% growth in 2026, even as wars, tariff uncertainty and disruptions to energy and fertiliser supplies through the Strait of Hormuz pressure the global outlook. India has grown at 7% or more every year since the Covid-19 pandemic, she said, calling the post-pandemic recovery a key demonstration of resilience. Her remarks come days after the RBI projected 2026-27 real GDP growth at 6.7%, a 10 basis point upward revision from its June estimate, citing a turbulent geopolitical environment, trade-related uncertainty and an unpredictable monsoon. Sitharaman said India imports nearly 80% of its fertilisers, including urea, DAP and potash, through Hormuz, and that the government had to procure supplies from alternative routes to keep urea at ₹300 per bag for farmers. Energy was made available to every household, she added, though the government paid a heavy price from global suppliers.
Why it matters
The finance minister's growth assurance matters for Indian households, borrowers and investors because it signals continued macro stability even as crude, fertiliser and tariff risks persist — while the RBI's 6.7% projection and the fertiliser subsidy bill show the real cost of that stability being paid from the public purse.
Read the original report — Hindustan Times
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