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Finance Minister Nirmala Sitharaman addressed concerns in the Lok Sabha over the recent slowdown in India's GDP growth during the second quarter of FY 2025, assuring that the dip is a "temporary blip" and growth is expected to rebound in the coming quarters. Speaking during the discussion on the Supplementary Demands for Grants - First Batch 2024-25, Sitharaman urged stakeholders to consider the broader context of the slowdown. "Let us not pick on the one GDP drop. This year, government expe
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FAQ :
She stated that the slowdown in India's Q2 GDP growth is a 'temporary blip' and that growth is expected to rebound in the coming quarters.
She mentioned that the timing of government expenditure, which effectively began in August, and the general downward bias for Q2 GDP growth during Lok Sabha election years contributed to the situation.
The Finance Minister dismissed concerns of a broad manufacturing slowdown, noting it was limited to a few sectors. She also highlighted a 6.7% year-on-year growth in government capital expenditure.
She stated that India's retail inflation averaged 5.1% between 2014-2024, significantly lower than double-digit inflation previously. Retail inflation eased to 5.5% in November, with food inflation reducing from 10.9% to 9%.
Despite the Q2 dip, the Finance Minister expressed confidence in India's economic resilience, supported by government initiatives, infrastructure investments, and stable inflation management, with an expected uptick in the remaining quarters of FY 2025.
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