Focus on long-term stability, not short-term growth: Finance ministry
India's finance ministry has urged the government to prioritize fiscal stability and long-pending reforms over short-term growth amid risks from the West Asia crisis. The ministry's Monthly Economic Review highlighted the need for a five-pronged reform strategy, including energy security, decriminalisation, and deregulation.
India should prioritize fiscal stability and push through long-pending reforms, rather than chasing near-term growth, the finance ministry's Monthly Economic Review said. The report, led by Chief Economic Adviser V Anantha Nageswaran, advised a five-pronged reform strategy, including energy security and resilience, domestic decriminalisation, and deregulation. The report flagged the urgency of reforms in agriculture and water policies, and highlighted the need to build a workforce resilient to technological disruption. India's merchandise trade deficit widened to $333.2 billion in FY26 from $283.5 billion in FY25. The report underscored the importance of certainty and stability in tax policy, and called for a coordinated push across agencies to attract capital flows.
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