FM Sitharaman: India and US Can Strengthen Ties in Semiconductors, Pharma, and Nuclear Sectors

On Tuesday, Finance Minister Nirmala Sitharaman highlighted the potential for India and the United States to further enhance their enduring economic partnership, fostering collaboration and investment across critical sectors like semiconductors, nuclear energy, pharmaceuticals, and quantum computing.

Image credit: Nirmala Sitharman's office. X Account: @nsitharamanoffc

Addressing an audience at Stanford University in California, she noted that new trade restrictions have tripled since 2019, with both developed and emerging economies working to safeguard domestic production and employment.

“At first glance, these developments appear formidable, and yet they are full of possibilities. New opportunities for deeper participation present themselves,” Sitharaman said.

She mentioned that the global trade and investment landscapes are being redefined to achieve a better balance between externally driven growth and domestic growth.

“When you have stability in government, consistency in policy, predictability in tax regime, investments—then growth can be planned and executed, even with this kind of global uncertainty,” the finance minister added.

The Finance Minister is currently on an official visit to the United States and Peru from April 20 to 30, 2025. During her trip, she will participate in the Spring Meetings of the International Monetary Fund–World Bank, attend G20 Finance Ministers and Central Bank Governors (FMCBG) meetings, and hold bilateral discussions with various countries and organizations.

Sitharaman emphasized that the United States has played a pivotal role in India's startup ecosystem, not only as a major investor in the country but also in fostering the development of the Global Capability Centre landscape in India.

Manufacturing: A Catalyst for Enhanced Performance

The finance minister emphasized that manufacturing is a key driver for the growth of the services sector, rather than the other way around. “In the post-COVID world, manufacturing enhances national security. Also in India, too, as we strengthen our foundations for long-term growth, manufacturing emerges as a key engine for transformation,” stated Sitharaman.

She highlighted the need to scale up manufacturing to accommodate a young workforce, reduce critical dependencies, and establish competitive global supply chains. Additionally, she pointed out the government's aim to raise the share of manufacturing in employment from 12% to 23% by focusing on emerging sectors.

Sitharaman also noted that over the last decade, the government has made significant strides in infrastructure development to create a solid foundation for manufacturing-driven growth and boost investor confidence.

“This has been enabled by a more than fourfold increase in the Union government’s capital expenditure between 2017–18 and the 2025–26 Budget,” she said.

She stated that in order to sustain India's growth momentum over the next two decades, a new approach is required, one that is based on bold reforms, enhanced domestic capacities, renewed institutional partnerships, and adaptable strategies that align with the changing global landscape.

The past two Union Budgets have set the foundation for this transformation, outlining a clear multi-sectoral policy agenda.

“Our next focus is reducing regulatory frictions, digitising approvals, and integrating micro, small and medium enterprises (MSMEs) into the global value chain,” the finance minister said.

The finance minister, in her speech, emphasized that the vision of Viksit Bharat will be driven not just by the government but by the collective efforts of every citizen.

“This vision calls upon us to think boldly, act inclusively, and stay prescient and flexible,” she said.

(This Article was originally published by Business Standard)