India's Q2FY25 GDP growth slowdown 'temporary blip', recovery in coming qtrs: Nirmala Sitharaman tells Lok Sabha
New Delhi: Finance Minister Nirmala Sitharaman told the Lok Sabha on Tuesday that the government views the GDP growth slowdown in Q2FY25 as "a temporary blip" and expects improvement in the upcoming quarters.
"Government believes that the Q2 GDP growth slowdown is a temporary blip, and we will see an improvement in the coming quarters," Sitharaman said while responding to the discussion on the Supplementary Demands for Grants - First Batch 2024-25 in Lok Sabha, reported Moneycontrol
She acknowledged that the second quarter of the current fiscal has been challenging for India as well as for many global economies.
However, she highlighted that India's GDP growth rate has averaged 8.3 percent over the last three years, reflecting "steady, sustained growth, an exceptional achievement by global standards."
This, she noted, reinforces India’s position as the fastest-growing major economy in the world.
"I am optimistic about an improvement in economic performance going ahead," she added.
The finance minister’s remarks come amid concerns over India’s GDP growth, which fell to a seven-quarter low of 5.4 percent in Q2FY25, compared to 6.7 percent in the first quarter.
While mining contracted by 0.1 percent in Q2—its first decline in two years—manufacturing growth slowed sharply to 2.2 percent from 7 percent in the previous quarter.
Sitharaman clarified that the slowdown in manufacturing "is not generalised and has been restricted to a few sectors."
On inflation, Sitharaman stated that the headline retail inflation rate was brought down to 5.1 percent during 2014-2024, following double-digit levels under the previous Congress-led government.
"The Centre is committed to better managing food inflation where volatility in certain food items is weather driven," she said.
India’s retail inflation eased to 5.5 percent in November from a 14-month high of 6.2 percent in October, as food prices moderated.
Food inflation dropped to 9 percent in November, down from 10.9 percent the previous month.
However, consumer prices remained above 5 percent for the third consecutive month.
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