ET Business Reformer of the Year 2021: Nirmala Sitharaman-Life support and recovery, forged in the crucible of a pandemic

Finance and corporate affairs minister Nirmala Sitharaman was the overwhelming choice for Business Reformer of the Year, receiving a dominant percentage of the vote from the jury for guiding the economy through the pandemic. She received praise for the last two budgets of the Covid years that sought to support the economy through public investment while ensuring that those impacted by the outbreak were looked after.


In the very first few months of taking over as the finance minister in 2019, she surprised the industry with a bold move to cut the corporate tax rate to 25% and introduced a globally competitive 15% rate for new investments in manufacturing. There has been no let-up in reforms since then, as the finance minister sought to lift investments, reform tax administration, improve budget transparency, strengthen public sector banks, resolve niggles in the insolvency law and improve the goods and services tax (GST) among other measures.


The Jawaharlal Nehru University economics alumna would soon be tested as the country and the world were hit by the Covid-19 pandemic. The strict lockdown during the first wave of the pandemic that derailed the economy forced Sitharaman into a battle to keep businesses alive, the poor provided with income and food support, and essential supplies available, even as revenues crashed.

Even her strongest critics would agree that the task was a nightmare for any country and any finance minister. She tackled this by rolling out packages that would deliver the biggest bang for the buck while ensuring that the government’s finances did not get derailed. The timely stimulus packages, easing of compliance burdens, and extension of relief to the poor helped the economy cope with the crisis. India, after experiencing the worst contraction of GDP in FY21, managed to bounce back and is expected to post strong growth in the current fiscal year and the next one.

The minister didn’t shy away from bold decisions. India repealed the controversial retrospective amendment on indirect transfers, providing for the settlement of longpending cases that had become symbolic of India’s tough business and tax environment.

The government budget was cleaned up and made more transparent — past subsidy dues were cleared and off-budget expenditure items such as money owed to the Food Corporation of India settled. She de-criminalised the company law. A clear policy on disinvestment and privatisation is in place and the once almost-unthinkable sale of Air India has already happened.

Nirmala Sitharaman completed her master’s in economics in 1984 before shifting to London after marriage. There she worked as senior manager of research and analysis at Price Waterhouse. She joined the BJP in 2006 and was quickly made a spokesperson of the party in 2010. She was the first woman defence minister of India and then became the country’s first full-time woman finance minister.