On March 24, 2025, the Indian government appointed Ajay Seth, the current Economic Affairs Secretary, as the new Finance Secretary. This decision comes at a crucial moment as the government works to find the right balance between fiscal discipline and economic growth. With over thirty years of experience, Seth has been a key player in shaping India’s economic policies and driving financial reforms.
His appointment as finance secretary comes at a critical juncture when the Union government is working hard to maintain fiscal discipline while also pushing for economic growth. India’s economy showed some recovery signs in the December quarter, with growth increasing to 6.2% from 5.6% in the previous three months, which had been the slowest since the March quarter of FY23. This means there’s still a significant amount of work to do in the final quarter of this fiscal year to reach the revised full-year growth target of 6.5%, as indicated by the National Statistical Office on Friday. Even if they manage to hit that target, India’s GDP growth for FY25 would still be 270 basis points (bps) lower than the revised estimate of 9.2% from the previous fiscal year, emphasizing the challenges that Seth will face in guiding the economy.
