India Maintains Economic Growth Amid West Asia Crisis

The Government of India maintained its position as the world's fastest-growing major economy despite the economic pressures of a West Asia crisis that began on February 28. To stabilize the economy, the government utilized robust domestic consumption and new free trade agreements, including a January deal with the European Union.

Finance Minister Nirmala Sitharaman outlined a strategic framework based on advice from Prime Minister Narendra Modi delivered on May 10. This strategy focused on preserving fuel, fertiliser, and foreign exchange, which Sitharaman refers to as the three Fs. To achieve this, the government urged citizens to limit international travel, postpone gold purchases, and reduce the use of cars and cooking oil.

To protect agricultural stability, the government continued providing fertiliser subsidies, despite the resulting drain on foreign currency reserves. Parallel to these domestic measures, Sitharaman co-chaired the India-France Economic and Financial Dialogue in Aix-en-Provence with French Minister Roland Lescure. The two nations discussed cooperation regarding security policies, economic sovereignty, and the management of critical minerals.