FE Leadership Awards 2026: Budget, equity markets, Tata row — 8 takeaways from FM’s speech

Here are eight key takeaways from her remarks. 1. Sitharaman acknowledges calls for greater support to equity markets Sitharaman acknowledged that concerns over foreign investor outflows and the need for greater support to India's equity markets had grown. She said the government recognised the importance of equity investments in meeting the country's capital requirements and sustaining economic growth.

“Circumstances have changed. Challenges have grown. More FII outflows have happened. It started resuming now, they've started coming back now,” she said. https://www.instagram.com/p/DfPk0OlFUMH/?utm_source=ig_web_copy_link&srtk=MWQ1ZGUxMzBkMA%3D%3D The minister pointed out that the taxation structure was similar in 2023-24, when foreign investment inflows were strong. However, she acknowledged that investor concerns had become louder amid changing market conditions.

“At a time where our growth is very important, where people are putting their very best that we are able to see sustained 7-plus growth, in order to keep that impact we need capital and equity particularly,” she said. Sitharaman said the government had focused on deepening and widening the bond market over the past few years. Equity market participants were now seeking similar attention and support.

“So I wouldn't want to say more at this stage but I recognise the voice,” she said. Asked whether the Budget would roll out the red carpet for the dollar and foreign portfolio investors (FPIs), she declined to endorse the suggestion, saying such a headline could create the impression that the government favoured foreign investors over domestic investors. 2. Successive Budgets have strengthened the Finance Minister's experience Reflecting on her tenure as Finance Minister, Sitharaman described the responsibility of presenting the Budget as an overwhelming experience.

She said every Budget brought new challenges and lessons about the economy and public expectations. “It's always an overwhelming feeling of the responsibility to deliver a proper Budget which means a lot to the people. Which helps the growth, which faces the challenges,” she said. Looking back at her first Budget in 2019, she said the experience of presenting successive Budgets had enriched her understanding of the economy.

Feedback received during and after each Budget, as well as the way the year unfolded, had helped shape subsequent exercises. “From 19 to today, the experience has enriched me, the messages that each time I get during and after the Budget and the way in which the year pans out, all taught me immense. So each Budget I feel gets the benefit of that experience that I have had,” she said. She also credited the public's response to the government's policies and Prime Minister Narendra Modi's leadership for providing stability.

Sitharaman said the Budget-making process involved extensive consultations and inputs at different levels, beyond the formal pre-Budget exercise. 3. Government to focus on skilling as AI changes the jobs market Addressing concerns about youth unemployment, job quality and wage growth, Sitharaman said the government would continue to focus on skilling young people and preparing them for employment.

She disagreed with the suggestion that India's consumption story could weaken because wage growth had not kept pace with corporate profits. Referring to the latest GST figures, she said she believed consumption would remain intact. The minister identified the gap between college education and industry requirements as a key employment challenge. She said companies often had to spend six to eight months training new recruits before they could deploy them in jobs.

Bridging this gap would remain a priority, she said, adding that the government had started working on skilling through the previous two Budgets and would continue these efforts. Sitharaman also said the spread of artificial intelligence across industries would not eliminate the need for human workers. Instead, businesses, including micro, small and medium enterprises, would need employees who could work with AI and use it to improve productivity.

“Our school curriculum, college curriculum, professional colleges, all of them need that extra curricular input for youth to come out job ready,” she said. 4. Sitharaman says Opposition should question government in Parliament Sitharaman criticised the Congress and other Opposition parties for taking political disputes to the streets instead of using Parliament to question the government. She said the Opposition had every right to hold the government accountable, raise questions and demand answers, but argued that they should challenge the government through parliamentary debates and discussions.

“To be in the opposition and to put the government on the mat to answer questions is absolutely right. I am not against that. I want that protest to happen in Parliament, not mock Parliament,” she said. The bloc held a symbolic public impeachment event against the CEC before organising a march and rally at Delhi's Ramlila Maidan on November 1. Sitharaman argued that elected representatives should use Parliament to debate and challenge the government rather than recreate parliamentary proceedings outside the institution.

She also said the Opposition's approach risked sending a message of political instability. 5. Tata Group should resolve leadership dispute internally, says Sitharaman On the dispute within the Tata Group, Sitharaman described the matter as delicate and said it should be resolved internally rather than through government intervention. She referred to Tata's importance to the Indian economy, its global brand value and its contribution to business.

The minister said resolving the disagreement would require commercial goodwill and cordiality among those involved. “These are very delicate matters. And matters where a lot of commercial and business goodwill will have to work. Business cordiality will have to work,” she said. She added that the dispute should not spill into the public domain and called on the group's leadership to resolve it quickly.

“We would like to have this settled soon,” she said. Her remarks came after Congress leader Rahul Gandhi alleged that the Tata Group was being “criminally destroyed” amid the dispute over Tata Sons' leadership. The disagreement has centred on the reappointment of N Chandrasekaran as Tata Sons chairman and whether the holding company should list on the stock market. Sitharaman said she expected the matter to be settled among the parties within the group. 6.

Sitharaman rejects view that India's economy is dominated only by big business groups Responding to concerns that India's economy was increasingly dominated by a small number of large business groups, Sitharaman said the presence of major companies did not tell the whole story. She pointed to the growth of micro, small and medium enterprises (MSMEs), arguing that the sector was also expanding. She defended the government's decision to revise the definition of MSMEs, saying the changes were intended to allow businesses to grow without losing the benefits available to them under the classification.

“The very reason why we had to change the definition of MSMEs, meaning even if they grew bigger you would retain them either as micro, small or medium industry without them losing the benefits, is because we wanted the micro not to remain like a dwarf,” she said. “We wanted the micro to grow into small, small to grow into medium, medium to grow big and that is why we are loved for this definitional change, making it possible for them to grow but yet get the benefit,” she added.

The minister said large companies had an established place in the economy but argued that the expansion of smaller businesses also needed to be recognised. 7. Government reviewing rules to simplify business regulations and tender procedures Sitharaman said the Centre and state governments were taking the Economic Survey's observations on regulatory architecture and business conditions seriously. She said several states had approached the Centre to discuss how they could address the issues highlighted in the Survey.

The Department of Expenditure periodically reviews procurement rules and the terms and conditions governing government tenders, she said. The objective is to improve transparency, make the process more industry-friendly and reduce procedural hurdles for businesses. She said tender processes had been simplified and made more user-friendly, addressing some of the difficulties companies previously faced when bidding for government contracts.

Sitharaman also cited changes to project execution rules and requirements relating to bank and individual guarantees. Some business-friendly measures introduced during the Covid-19 pandemic had continued beyond the emergency period. As an example, she referred to the option of holding annual general meetings (AGMs) through video conferencing or a hybrid format, with a physical meeting required once in three years under the arrangement she described.

The Corporate Laws (Amendment) Bill, 2026 proposes requiring a physical AGM at least once every three years. 8. Sitharaman says private-sector investment is picking up after GST 2.0Asked about the lack of broad-based private-sector investment despite strong corporate balance sheets, Sitharaman said she was now seeing companies invest, although the pace and sectors being chosen could vary. She linked the improvement in business confidence to the next-generation GST reforms, referred to as GST 2.0, introduced in September 2025.

According to her, stronger consumption and visible demand were encouraging companies to invest in production. “Couple of years ago and I probably had said yes but now I am seeing industry come up. I am seeing industry invest, may be they are selective, may be they are choosing the sector, may be they are not going to the sector but I am seeing industry come up,” she said. The minister also referred to the latest GST collection figures as evidence of domestic demand holding up the economy.

Addressing questions about the role of imports in supporting consumption, she said imports of raw materials needed by Indian manufacturers should not automatically be viewed negatively. “If your industry wants imports, it will import, so consumption having really come up has given the clear visibility and therefore I am saying investment is happening,” she said.