New Delhi describes India’s economic slowdown as ‘temporary blip’
Date
12/24/2024 7:29:46 AM
(MENAFN) India's Finance Minister, Nirmala Sitharaman, has addressed the recent slowdown in the country's GDP growth, labeling it a "temporary blip" and expressing confidence in stronger economic performance in the coming months. Speaking to parliament, Sitharaman noted that the GDP growth rate had dropped to 5.4% in the July-September quarter, the lowest in seven quarters, mainly due to weak manufacturing performance and slow government spending.
However, she emphasized that the Economy had grown at a healthier rate of 6.7% in the first quarter (April-June) and believes the slowdown is short-term. The manufacturing sector, she clarified, is not experiencing a widespread decline, despite the 2.2% growth recorded in Q2, the slowest in six quarters.
Sitharaman also pointed out that economic slowdowns typically follow general elections and that the approval of the 2024-25 federal budget after the elections led to an uptick in government spending. She compared the inflation rates under various administrations, noting that the current government has effectively managed inflation, which has averaged 5.1% from 2014 to 2024.
Sitharaman further highlighted that India’s GDP grew by 8.2% in 2023-24 and 7.2% the previous year, affirming the country’s status as the fastest-growing major economy. The government remains optimistic about India becoming a $10 trillion economy by the end of this decade.
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