Meet The Finance Minister of India
India’s full time Finance Minister, Nirmala Sitharaman is one of the most powerful women at the head of global financial affairs. As India grows into the 5th largest economy, Sitharaman is at the epicenter of this change, heralding a new era as far as financial policy in one of the growth corners for the Indian economy.
Her story, the journey from nothing to again becoming the first full time female Finance Minister of India, is quite inspiring and beholden hacks pays tribute to outlining some top root cause analysis lessons we can draw through her life experience.
Nirmala Sitharaman’s Biography and Early Life
Hailing from Madurai, Tamil Nadu, Nirmala Sitharaman was born on August 18th of the year 1959 into a family that imbibed strong educational values. Her father worked with Indian Railways and her mother was a homemaker who loved literature. Hailing from a middle-class background, she had an acute sense of the struggles faced by common people in India.
The resilience, her humble beginnings and her love for education really set the stage of a political-governance success story.
Educational Qualification of Nirmala Sitharaman
Nirmala Sitharaman completed her studies in an absolutely different way. Nirmala Sitharaman studied at Seethalakshmi Ramaswami College with a bachelor’s degree (Economics), Tiruchirappalli and then took her master’s from Jawaharlal Nehru University (JNU), New Delhi.
She pursued her specialization in Economics with a focus on Indo-European trade and relations from JNU. Her PhD in the subject gave her insights into international trade dynamics and global economics that would form the basis of future decisions when she chaired the Indian Finance Ministry.
Early Career of Nirmala Sitharaman
Prior to politics, Sitharaman worked in research and global trade. She started her early professional career in the UK as a Senior Manager of research and analysis at PricewaterhouseCoopers. She also has experience in international trade and agriculture policy following her time working at the Agricultural Engineers Association (AEA) in London.
Back in India in the early 2000s, Sitharaman was into policy research and she associated with the think tank – National Commission for Women (NCW), and worked on significantly advocating women’s rights & matters. Not long after, Sitharaman lived on a more prevailing prospect—politics—using her command over economics and public policy.
Nirmala Sitharaman’s Entry into Politics
Nirmala Sitharaman began her political career in 2006 when she became a member of the Bharatiya Janata Party (BJP). Besides, she started as a party spokesperson since here she again crafted her identity with measured and logical arguments within the media defending many of their key policies.
She broke through in a big way the following year, when she was promoted to Minister of State (Independent Charge) for Commerce and Industry by Prime Minister Narendra Modi. She could use this to directly shape the country’s international trade policy and push economic diplomacy.
Political Career of Nirmala Sitharaman: A Gradual Rise
In 2008, Nirmala Sitharaman formally entered politics by becoming a member of the BJP. With a mix of an almost compulsive dedication to detail and mastery in tackling economic realities, she worked her way up.
In 2010, she was appointed as the national spokesperson of BJP and emerged to be a very famous face known for her clarity with which she talked about complex issues. Sworn in as a Member of the Union Cabinet for the first time, she was given charge of the Ministry after Prime Minister Narendra Modi took office on 26 May 2014. Her potential job in this role truly justified that she encircled both the worldwide exchange and troubles faced by surrounding organizations.
Two years ago, Sitharaman made history as the first full-time female Defense Minister of India and only the second woman in what is probably among the most unfriendly professions for women—national security. As a Defense Minister, she took some bold and praiseworthy decisions to tighten the defense sector of India and also successfully handled a number of highly sensorial geopolitical issues during her authority.
Nirmala Sitharaman In May 2019, Nirmala Sitharaman was appointed India’s Finance Minister, the first woman since Indira Gandhi to hold that post.
Becoming Finance Minister: Navigating Through Stormy Waters
Nirmala Sitharaman took charge as the Finance Minister of India on 31 May (2019). Taking up a huge responsibility at the time of difficult periods for the global and economical era, with growth slowing and trade tensions escalating, she engaged in streamlining the trading system.
The Union Budget 2019 announced by her is one of the most notable achievements early in her term, as she brought major tax reforms and infrastructure investments along with benefits to startups. She was lauded for her emphasis on raising rural income, widening the tax base and simplifying taxes. Moreover, she has played a critical role as the Minister of Finance in steering India out of the COVID-19 pandemic by initiating stimulus packages that survived beyond ₹20 lakh crore to put life into Indian economy.
Nirmala Sitharaman’s Key Political Initiatives
1.Union Budget 2019:
Within three weeks of being part of the new government led by Narendra Modi after BJP returned to power with an even bigger mandate than in 2044 (282 seats then as opposed to 303 now), Nirmala Sitharaman was at it; presenting her first Union Budget on July budget had a lot of announcements for infrastructure development and affordable housing, besides some tax reforms. Her insistence on a boost in investment and corporation tax cut was the exact story point.
2. Corporate Tax Reform (2019):
To attract foreign investments and encourage nationwide companies to reinvest their profits, Sitharaman announced an aggressive cut in corporate tax rates from 30% to 22% for local companies, which was one of the prominent cuts announced over Indian Tax Budget.
3. Solving COVID-19 Economic Crisis:
Sitharaman issued a potential economic relief packages at the time of COVID-19 pandemic as part of “Atmanirbhar Bharat” (Self-Sufficient India) project. It was a package of ₹20 lakh crore (approximated USD 260 billion), for the purpose of boosting Indian businesses specially the small and medium enterprises (SMEs), serving liquidity to the banks and protecting India’s overall workforce to ensure the safety of Indian economy.
4. Atmanirbhar Bharat Package. 2020
He was the architect of ₹20 lakh crore ($250 billion) stimulus package for ‘Atmanirbhar Bharat’ after COVID-19 situation. The package included measures such as fiscal stimulus, direct cash transfers to farmers and MSMEs, credit guarantees for these segments of the economy plus reforms in agricultural sector.
5.GST reforms
In Nirmala Sitharaman’s leadership, the Goods and Services Tax system was rationalized, reducing the number of returns from 206 to 12 per year and made it less burdensome for the business to comply. It also led to higher revenue generation than the previous years.
6.Digital Economy Push
Sitharaman has always been supportive of taking the digital economy to greater heights. She has always been supportive of the Digital India scheme and also UPI system. The UPI transactions alone were as high as 8.7 billion in India, only in March 2024.
7.National Infrastructure Pipeline
The government, under her leadership, had come up with an announcement of planning to invest over ₹102 lakh crore in the infrastructure development of over 5 years. It was believed and designed to offer employment, modernize the infrastructure and attract global investments.
Nirmala Sitharaman’s Contribution to Cryptocurrency Industry
Nirmala Sitharaman is widely accountable for setting up India’s policies among the rapidly growing cryptocurrency market. While India has been cautious about this sector, her work indicates a more pragmatic approach. Rather than an outright ban, she has been providing an argument for more balanced regulation including tightening the responsibility the crypto holders and traders have to the government.
In 2022, she implemented a 30% tax on virtual assets income, referring to both the gains from trading and profits from value appreciation, and a 1% TDS on the cryptocurrency transaction, which color. These moves might imply the beginning of crypto legislative framework within the Indian tax control and due to the decentralized nature of cryptocurrencies, a global turn in the digitized world of finance.
Sitharaman though remains wary in regard to crypto implications, adding that a global approach is needed to deal with it. Further, she has shown her interest in adopting a blockchain in many of the offered areas, including multi-sectoral integration options like banking or supply chain.
Future Goals of Sitharaman: Modernizing Other Aspects of the Economy
Nirmala Sitharaman’s modernization of the Indian economy will likely not stop in its financial sector. As technologies continue to improve, modern financial systems will also spread to other areas of the economy, with India quickly following suit.
- Green finance: Factors such as lending through the internet are already active in the country, with the same likely to happen in other sectors. Moreover, with an increasing push towards sustainability as the main focus for several world governments, India, with the help of the current minister, is likely to trend as such. Overall, Sitharaman’s future role will be more generalized in modernizing India’s economy.
- Digital Currency Launch: India starts working on its Central Bank Digital Currency under the leadership of Sitharaman’s finance ministry. Already the RBI has smooth up efforts in piloting projects on wholesale and retail digital currency. This move suggests India is on course to join other nations that have introduced sovereign digital currencies.
- Increase in Financial Inclusion: Having reaped the fruits of Jan Dhan Yojana, Sitharaman has planned to scale this financial inclusion strategy. She wants to achieve this goal by enhancing access to the digital banking capabilities and improving financial literacy in rural India. Her ambition is to inclusively grow the Indian economy where every citizen is embraced in formal financial sector services.
- Enhanced Global Trade Position: As a former commerce minister, Sitharaman is explicitly clear on her export-led solution for the Indian economy. The minister has pronounced that she plans to make India a global manufacturing powerhouse by promoting Make in India, easing trade regulations, and acquiring new bilateral and multilateral trade pacts.
- Promotion of Startups and Innovation: Given the minister’s long commitment to mentoring young innovators and the development of tech startups India, she has promised new tax perks and eased the systems and procedures. This practical and supportive legislative environment is a telltale sign of a booming tech ecosystem in India.
Furthering the same, this rise of Nirmala Sitharaman from a small town in Tamil Nadu to become one of the most powerful men/women figures as India’s Finance Minister reflects on sheer willpower and intelligence along with her vast experience that she holds when it comes down to understanding Global Economics. As the policy changes she instituted come to fruition, India’s financial future continues shaping in line with long-term growth while being green and fair. As a result, India is set to experience an economic overhaul under her stewardship, where the country will become more integrated and place greater emphasis on self-reliance as well as lure innovation and digitalization.
