India's GDP growth fell more than anticipated to a seven-quarter low of 5.4 percent during the second quarter of FY25, from 6.7 percent in the first quarter, at the time of the finance minister's remarks.
On December 17, Finance Minister Nirmala Sitharaman informed the Lok Sabha that the administration thinks the Q2FY25 dip in GDP growth "is a temporary blip" and that the next quarters will see an improvement.In response to the Lok Sabha's discussion on Supplementary Demands for Grants-First Batch 2024-25, Sitharaman stated, "The government believes that the Q2 GDP growth slowdown is a temporary blip, and we will see an improvement in the coming quarters."
Sitharaman admitted that India and the majority of the world's economies have faced difficulties during the second quarter of the current fiscal year.
But over the past three years, India's GDP has grown at an average pace of 8.3 percent, which is remarkable by international standards. "This further solidifies India's standing as the world's fastest-growing major economy," she said.
"I am optimistic about an improvement in economic performance going ahead," she stated.
India's GDP growth fell more than anticipated to a seven-quarter low of 5.4 percent during the second quarter of FY25, from 6.7 percent in the first quarter, at the time of the finance minister's remarks.
"I am optimistic about an improvement in economic performance going ahead," she stated.
India's GDP growth fell more than anticipated to a seven-quarter low of 5.4 percent during the second quarter of FY25, from 6.7 percent in the first quarter, at the time of the finance minister's remarks.
In the second quarter, manufacturing slowed significantly to 2.2 percent from 7 percent, while mining contracted by 0.1 percent, the first slowdown in two years.
According to Sitharaman, the manufacturing sector's downturn has only affected a small number of industries and is not widespread.
According to Sitharaman, the headline retail rate of inflation was reduced to 5.1% between 2014 and 2024 after reaching double digits 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 stated.
As food prices cooled off, India's retail inflation rate dropped to 5.5 percent in November from a 14-month high of 6.2 percent the month before.
Compared to 10.9 percent in October, food inflation decreased to 9 percent for the month.
For the third consecutive month, consumer prices stayed above 5 percent.
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