Fri Oct 04 06:28:31 UTC 2024: ## India’s Living Standards Set to Surge: FM Sitharaman

**New Delhi:** Finance Minister Nirmala Sitharaman has projected a significant increase in living standards for Indians in the coming decades, citing a projected rise in per capita income by $2,000 over the next five years.

Addressing the Kautilya Economic Conclave, Sitharaman highlighted that India’s economic progress has resulted in a decline in inequality, with the Gini coefficient showing improvements in both rural and urban areas.

While emphasizing the government’s commitment to reducing the fiscal deficit, Sitharaman noted that buoyant revenue generation and restrained revenue expenditure growth have contributed to a projected decline in the deficit from 5.6% of GDP in FY24 to 4.9% in FY25.

This fiscal discipline, she said, will help keep bond yields in check and lower economy-wide borrowing costs. The FM also highlighted a continued increase in capital expenditure, budgeted at ₹11.1 lakh crore in FY 2024-25, representing 3.4% of GDP.

Looking ahead, Sitharaman acknowledged that India’s economic rise in the coming decades will be shaped by a changing global landscape. While the country is expected to continue growing, the favorable trade and investment climate of the early 2000s has shifted, presenting both challenges and opportunities.

The Finance Minister emphasized the importance of a “whole-of-government” approach to addressing the dual challenges of dealing with the legacy emissions of developed nations and managing India’s energy transition. She also highlighted India’s potential to offer solutions to global energy demands and use practices.

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