Citing a study, Sitharaman said the Pradhan Mantri Garib Kalyan Yojana (PMGKY) reduced the probability of borrowing money significantly during the unprecedented situation of the covid-19 pandemic.

"If 1991 saw one kind of step taken by the government and the economy being revived again, so was the situation in 2013-14. Reforms such as GST and IBC (Insolvency and Bankruptcy Code) prepared us for the trying situations during the pandemic which no one could have anticipated," Sitharaman added.

India raised funds and distributed them not only for infrastructure building but also for livelihood prospects in each region, she added. The economy is given a boost by looking at the possible multiplier effect it can create, Sitharaman reiterated.

During his address, Chief Economic Advisor (CEA) Anantha Nageswaran said the Indian economy is facing a "considerable" amount of challenges.

"This year we will be facing the challenges of managing the sustainably high growth rate, moderate inflation, keeping the fiscal under balance and ensuring that the external value of the Indian rupee remains stable," he said.

Nageswaran further said that the structural reforms of this government, such as the GST and IBC will manifest their advantages and potential in the coming decade, once the current clouds of global political developments and macro monetary policy challenges dissipate.

The CEA underlined that for these reasons India is forecasted by the International Monetary Fund (IMF) to cross $5 trillion by 2026-27 and if GDP of the country doubles every 7 years, we will be $20 trillion GDP by 2040 with the per capita income close to $15,000.

Nageswaran expressed confidence that India is better positioned than many other countries in facing the current challenges.