FM Sitharaman Optimistic About India's Economic Future Despite Q2 Slowdown

New Delhi, Dec 18 (KNN) Finance Minister Nirmala Sitharaman addressed the Lok Sabha on Tuesday, offering a nuanced perspective on India's economic performance, emphasising resilience despite a temporary economic deceleration.

The second quarter of the current financial year witnessed a GDP growth rate of 5.4 per cent, marking an 18-month low and a decline from the previous quarter's 6.7 per cent growth.

Acknowledging the challenges of the July-September period, Sitharaman characterised the economic slowdown as a ‘temporary blip’ while maintaining an optimistic outlook for future quarters. 

She highlighted India's remarkable economic achievement of averaging 8.3 per cent GDP growth over the past three years, positioning the country as the world's fastest-growing major economy.

The Finance Minister provided a balanced assessment of the economic landscape, dispelling concerns about a broad-based manufacturing sector decline. 

She noted that while some sectors faced challenges, approximately half of the manufacturing basket remains strong, indicating underlying economic stability.

Inflation trends also offered a positive narrative. Sitharaman reported that retail inflation for April-October 2024-25 stood at 4.8 per cent, the lowest level since the COVID-19 pandemic. 

This figure demonstrates effective price management despite global economic pressures, including volatile oil prices and supply chain disruptions.

Employment statistics further reinforced the government's economic narrative. The unemployment rate has significantly decreased from 6 per cent in 2017-18 to 3.2 per cent currently, signalling robust job creation and economic recovery across various sectors.

In her comprehensive address, Sitharaman credited the Indian people and leadership for the nation's economic performance. 

She expressed confidence that the current quarter's growth dip is temporary and that the economy will soon return to a trajectory of healthy expansion.

The Finance Minister's statements, delivered during a debate on Supplementary Demands for Grants, underscored the government's commitment to maintaining economic momentum and addressing challenges with strategic interventions.

(KNN Bureau)