Lagatar24 Desk
New Delhi: Finance Minister Nirmala Sitharaman on Tuesday reassured the Lok Sabha that India’s economic growth will recover in the coming quarters despite the recent slowdown, which she described as a “temporary blip.”
India’s GDP growth for the July-September quarter dropped sharply to 5.4%, marking an 18-month low, as per data released by the National Statistics Office (NSO) in November. Sitharaman acknowledged that Q2 was a challenging period but maintained confidence in the economy’s resilience.
“At 5.4%, the Q2 rate is slower than expected. This quarter has been challenging not just for India, but for economies across the globe,” she said. However, Sitharaman emphasized India’s robust economic performance, noting an average GDP growth of 8.3% over the last three years.
The Finance Minister reiterated India’s position as the fastest-growing major economy, attributing it to “the people of India and strong leadership.” She added, “The economy will see healthy growth in the coming quarters.”
While addressing concerns about the manufacturing sector, Sitharaman dismissed fears of a broad-based decline, explaining that many sectors within the manufacturing basket remain resilient.
Inflation Under Control
Sitharaman also highlighted progress in tackling inflation, comparing current levels to the double-digit inflation witnessed during the United Progressive Alliance (UPA) regime. Retail inflation for April-October 2024-25 stood at 4.8%, the lowest since the Covid pandemic, despite global challenges such as rising oil prices and disrupted supply chains.
Improved Employment Levels
The Finance Minister cited improved employment indicators as another sign of economic recovery. She stated that the unemployment rate had fallen from 6% in 2017-18 to 3.2%, underscoring job creation across various sectors as evidence of sustained growth.
Sitharaman made these remarks while replying to a debate on the first batch of Supplementary Demands for Grants in the Lok Sabha, where she reassured the House of India’s strong economic fundamentals and its ability to withstand global pressures.
