Lower Q2 GDP growth a temporary blip; economy to improve in coming quarters, says Nirmala Sitharaman-OxBig News Network

Union Finance Minister Nirmala Sitharaman speaks during the Winter session of Parliament, in New Delhi, on December 17, 2024.
| Photo Credit: PTI

Union Finance Minister Nirmala Sitharaman on Tuesday (December 17, 2024) said the lower-than-expected GDP growth of 5.4% in the second quarter was a “temporary blip” and the economy will see healthy growth in the coming quarters.

Replying to a debate in the Lok Sabha on the first batch of Supplementary Demands for Grants, she said India has seen “steady and sustained” growth and its GDP growth rate has averaged 8.3% in the last three years.

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India continues to be the fastest-growing major economy in the world, Ms. Sitharaman added.

The second quarter growth is only a “temporary blip”, and the economy will see healthy growth in the coming quarters, Ms. Sitharaman said.

The Finance Minister further said there is no broad-based slowdown in the manufacturing sector. Half of the sectors within the overall manufacturing basket continue to remain strong.

The Indian economy grew 6.7% in the first (April-June) quarter and 5.4% in the July-September period.

About inflation, Ms. Sitharaman said it is better controlled in the NDA regime, whereas under the UPA, it touched double digits.

Retail inflation in April-October 2024-25 stood at 4.8%, the lowest since the COVID pandemic, she noted.

Ms. Sitharaman said the unemployment rate has come down from 6% in 2017-18 to 3.2%t now.