'Reform Express' to drive economic momentum amid global challenges: FM Sitharaman

Finance minister Nirmala Sitharaman on Friday said the government remains committed to driving the "Reform Express" through decisive policy measures to sustain economic momentum despite global challenges, even as the Reserve Bank of India lowered its FY27 growth forecast.Earlier in the day, the RBI cut its GDP growth projection for FY27 to 6.6% from 6.9% estimated in April, citing elevated energy and commodity prices and continuing supply disruptions arising from the West Asia conflict.The government, however, pointed to strong economic performance in FY26, with real GDP estimated to have grown 7.7% and real gross value added (GVA) rising 7.9%, according to provisional estimates.Real GDP and real GVA are estimated to have expanded 7.8% and 7.9%, respectively, during the January-March quarter of FY26.Manufacturing, trade, repair, hotels, transport, communication and services related to broadcasting, storage, and financial, real estate and professional services sectors recorded double-digit growth at both constant and current prices during FY26."Our government, led by Hon'ble PM Shri @narendramodi is committed to further drive the 'Reform Express' with decisive policy measures to ensure positive economic momentum amidst the global challenges," Sitharaman said in a post on X.Earlier on Friday, the government exempted foreign investors from income tax on interest income and capital gains arising from investments in government securities, in a move aimed at attracting overseas capital and easing pressure on the rupee.The government promulgated an ordinance to amend the Income Tax Act to provide tax exemptions on interest income and capital gains arising from the sale, exchange or transfer of government securities, according to a gazette notification dated June 5.The exemption will be effective from April 1 and will apply to any interest income or capital gains earned by foreign portfolio investors (FPIs) on government securities on or after that date. (PTI).