Nirmala Sitharaman Urges Shift to Innovation-Led Growth for India

Finance Minister Nirmala Sitharaman urged Indian corporations to transition from a "Made in India" vision to an "Imagined in India" approach during the 53rd National Management Convention of the All India Management Association in New Delhi. She stated that the next phase of economic growth must be driven by innovation, design, and technology development rather than manufacturing scale alone.

Sitharaman emphasized the need to capture value through patents, software, and intellectual property, noting that India's Gross Expenditure on R&D at 0.83% of GDP remains significantly lower than the OECD average of 2.7%. She called for a focus on durability and corporate governance over mere size to support the Viksit Bharat 2047 goal. Additionally, she encouraged family-owned enterprises to professionalize through better succession planning and a clearer separation between ownership and management.

Regarding the broader economy, the minister noted that India's GDP continues to expand at nearly 8%, supported by macro stability and rising discretionary spending. She highlighted that government public capital expenditure, which exceeded Rs 12 lakh crore in 2026-27, has successfully crowded in private investment and improved manufacturing capacity utilization. Sitharaman also advised businesses to resolve regulatory disputes through constructive engagement rather than immediate litigation.