Nirmala Sitharaman Reflects on India's Early Development Model at NCAER Lecture

Union Finance Minister Nirmala Sitharaman on Thursday reflected on India's early post-independence industrial and developmental trajectory, highlighting the country's achievements in building world-class scientific and educational institutions while acknowledging key challenges that shaped its economic path.

Watch LIVE: Smt @nsitharaman delivers the CD Deshmukh Lecture, organised by the National Council of Applied Economic Research (@ncaer), in New Delhi. https://t.co/mogrZ3kZqm

— Nirmala Sitharaman Office (@nsitharamanoffc) August 6, 2026

Delivering the prestigious C.D. Deshmukh Lecture at the National Council of Applied Economic Research (NCAER), Sitharaman said that independent India had placed immense faith in science and technology by establishing institutions such as the Indian Space Research Organisation (ISRO), Bhabha Atomic Research Centre (BARC), Bharat Heavy Electricals Limited (BHEL) and the Indian Institutes of Technology (IITs).

She noted that these institutions were built through global collaborations, citing German assistance for IIT Madras, Russian support for IIT Bombay, American collaboration at IIT Kanpur, and British collaboration at IIT Delhi.

The Finance Minister also highlighted the government's investment in major irrigation and power projects aimed at strengthening agriculture. However, she observed that implementation was often slow, with critical infrastructure such as water distribution networks failing to reach the last mile in many cases.

Reflecting on India's economic challenges during its formative years, Sitharaman said the country remained heavily dependent on external powers. She pointed out that India relied on the United States for food grains and the Soviet Union for a significant share of its defence platforms, while insufficient attention was given to exports and strengthening India's position in global trade at a time when several East Asian economies were building export-led growth models.

Quoting the ideas of economist Friedrich Hayek, she remarked that long-term central planning assumes that conditions remain largely unchanged over time, underscoring the importance of adaptability and economic flexibility in policymaking.

Sitharaman's address offered a historical perspective on India's development journey, emphasizing both the enduring strengths of its institution-building efforts and the lessons that continue to shape the country's economic policy today.