Nirmala Sitharaman

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Finance Minister Nirmala Sitharaman speaks during a bilateral meeting with U.S. officials in Washington, D.C., in 2023.

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Nirmala Sitharaman (born August 18, 1959, Madurai, Tamil Nadu, India) is an Indian politician and economist who was first appointed as the minister of finance and minister of corporate affairs in the central government in May 2019, becoming the country’s first woman to hold either position full time. A senior member of the Bharatiya Janata Party (BJP), she has also served as the defense minister (September 2017 to May 2019), making her one of the most prominent women in the Government of India.

Sitharaman was born into a Tamil Brahmin family as the daughter of Narayanan Sitharaman, an Indian Railways employee, and his wife, Savitri. She attended schools in Madras (now Chennai) and Tiruchirappalli and earned a bachelor’s degree in economics at Seethalakshmi Ramaswami College in Tiruchirappalli.

In 1984, she enrolled at Jawaharlal Nehru University in New Delhi, where she earned a master of arts and master of philosophy, both in economics. Sitharaman started her Ph.D. on Indo-European trade but left it unfinished when she moved to London with her husband, Parakala Prabhakar, an Indian economist and political and social commentator.

While in London, Sitharaman worked as a salesperson at Habitat, a home decor store. She also worked as an assistant to an economist at the Agricultural Engineers Association (U.K.), and held roles in research and development at PricewaterhouseCoopers and with the BBC World Service. In 1991, Sitharaman returned to India with Parakala. 

After returning to India, Sitharaman served as deputy director of the Centre for Public Policy Studies in Hyderabad. During this time, she met senior BJP leader Sushma Swaraj. Sitharaman’s interest in education led her to help found Pranava The School, a private co-educational school in Hyderabad, which opened in 2004.

She also became increasingly active in public service, joining the National Commission for Women (NCW) in 2003, a body that reviews the constitutional and legal safeguards for women in India, where she collaborated with Swaraj. Sitharaman was among NCW’s youngest members. In 2006, she formally joined the BJP at Swaraj’s behest, becoming a member of the party’s national executive in 2008 and its national spokesperson in 2010, a role she held until 2014.

When the BJP formed the central government in 2014 with Narendra Modi as the prime minister, Sitharaman was appointed minister of state in two ministries: finance and corporate affairs. She had not run for a seat in the Lok Sabha (the lower house of India’s bicameral legislature) but was elected to the Rajya Sabha (the upper house) from the state of Andhra Pradesh in June 2014. She has been a member since then and was reelected in 2016 and 2022. As a junior minister, she worked closely with then–Finance Minister Arun Jaitley.

Additionally, she was made the minister of state (independent charge) of Commerce and Industry. In this role, she led India in several summits, such as the G20 Trade Ministers’ Meeting in Sydney, Australia, in 2014; the 71st session of the United Nations Economic and Social Commission for Asia and the Pacific in Bangkok, Thailand, in 2015; and the third Regional Comprehensive Economic Partnership Inter-sessional Ministerial Meeting in Hanoi, Vietnam, in 2017. She engaged in bilateral trade talks with countries such as Ecuador, Colombia, and China.

Sitharaman’s next key role in the Union Cabinet was her appointment as India’s defense minister, a position she held from September 2017 to May 2019. Before her, the only woman to hold the post was Indira Gandhi, who served concurrently as prime minister and briefly took on the defense portfolio during cabinet transitions. Sitharaman, by contrast, was the first woman to be appointed full time to the role.

During her tenure, Sitharaman established the Defence Planning Committee to coordinate long-term national security strategy. Under her watch, the Indian Air Force launched an airstrike on Balakot, Pakistan, in February 2019. The operation followed a suicide bombing in Pulwama, in India-administered Kashmir, that killed some 40 Indian paramilitary personnel. The militant group Jaish-e-Mohammed claimed responsibility for the attack, and the retaliatory bombing targeted what India identified as one of the group’s training camps.

Sitharaman took charge as the minister of finance and minister of corporate affairs on May 31, 2019. Mirroring her role in the defense ministry, she was the second woman after Gandhi to serve as finance minister—and the first to hold the position full time. Following her first five-year stint, she was reappointed to both roles in June 2024. As of 2025, she oversaw an economy with a gross domestic product (GDP) of $4.3 trillion, reflecting a 105% growth over the past decade.

Sitharaman steered the country through the aftermath of the COVID-19 pandemic, implementing steps to mitigate its impacts. One such initiative was the Atmanirbhar Bharat Abhiyan (Self-Reliant India Mission), which rolled out policies to support several key sectors (including small and midsize enterprises, agriculture, and mining), provided assistance to the labor force, and introduced reforms to attract foreign investment.

The National Infrastructure Pipeline, launched in 2019, aimed to inject about $1.4 trillion into India’s infrastructure projects through 2025, encompassing nearly 10,000 projects. Sitharaman also introduced a series of tax measures and continued the implementation of the Goods and Services Tax (GST) introduced by her predecessor, Arun Jaitley. Among her initiatives was reducing corporate tax rates to stimulate economic growth.

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Nirmala Sitharaman presents the 2024–25 Union Budget in a traditional bahi-khata.

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She introduced the Income-Tax Bill, 2025, in the Indian parliament to reform taxation in the country, simplifying it for ease of use and introducing provisions for virtual digital assets such as cryptocurrency. The bill sought to replace the Income-Tax Act, 1961, and was approved by Pres. Droupadi Murmu in August 2025. Sitharaman also pursued reducing or selling the government’s ownership in state-run companies, known as disinvestment, alongside privatization to bolster revenue. The sale of the previously government-owned carrier Air India is a notable example.

Sitharaman was pivotal in advancing efforts to expand access to financial products and services and drive digital innovation. She oversaw the Pradhan Mantri Jan Dhan Yojana, which aimed to bring more citizens, particularly women and low-income households, into the banking system. As of January 15, 2025, more than 545 million JanDhan accounts had been opened through the program.

She also promoted the use of digital payments through the Unified Payments Interface (UPI), which has played a major role in India’s economic development by making it easier for individuals and businesses to send and receive money and participate in the economy.

To support India’s youth, particularly from low-income households, Sitharaman launched the Prime Minister’s Internship Scheme (PMIS) in 2024 to provide year-long internships at companies nationwide. The program features a mobile app to support digital accessibility.

Sitharaman shifted India’s global trade strategy toward strengthening bilateral relationships, reducing reliance on multilateral institutions such as the World Trade Organization (WTO). She emphasized that bilateral agreements are essential for advancing trade, investment, and strategic interests. India was in talks with the U.S. for a bilateral trade agreement since March 2025, looking to achieve trade worth $500 billion by 2030, but as the talks continued well into 2026 without any breakthrough and U.S. Pres. Donald Trump imposed 50 percent tariffs on Indian exports in late 2025, Sitharaman announced measures to boost Indian manufacturing in the Union Budget 2026, including proposals for a semiconductor mission, a corridor for rare earth minerals in four Indian states, and a tax holiday to boost data-center investments by foreign cloud companies in India. In May 2025 and January 2026, India finalized a free trade agreement with the U.K. and the European Union, respectively.

In response to inflationary pressures, the finance minister introduced measures such as controlling food prices and building up government reserves of essential goods (buffer stocks) to maintain stability. While presenting the Union Budget in February 2025, she said retail inflation had decreased to 4.3% in January from 5.22% in December 2024, according to the Consumer Price Index (CPI). Sitharaman also noted the rate was progressing toward the 4% target set by the Reserve Bank of India, India’s central bank.

Nirmala Sitharaman has earned consistent recognition as one of the world’s most influential leaders. She has been featured in the World’s 100 Most Powerful Women list by Forbes magazine, ranking 36th in 2022, 32nd in 2023, and 28th in 2024. 

Her impact as finance minister has also been marked by key milestones. Sitharaman has presented nine consecutive Union Budgets, just one short of the longest streak (held by former Finance Minister and Prime Minister Morarji Desai). She delivered the lengthiest budget speech on record in 2020. Her presentation lasted 2 hours and 40 minutes, with two pages left unread when she concluded the speech.

These recognitions and records underscore Sitharaman’s central role in shaping India’s economic direction and her place among the country’s most prominent policymakers.