Modi govt says Q2 GDP slowdown ‘a short lived blip’, progress figures will enhance in subsequent quarters

Union Finance Minister Nirmala Sitharaman on Tuesday (December 17) acknowledged that the financial progress was “slower than anticipated” within the July-September quarter (Q2).

Talking within the Lok Sabha, Sitharaman on the identical time stated that the federal government expects the expansion to choose up quickly.

“The true GDP progress in Q2 has been slower than anticipated. Q2 has been a difficult time for India and most nations internationally. Authorities believes that the Q2 GDP progress slowdown is a short lived blip, and we are going to see an enchancment in coming quarters,” stated Sitharaman, in accordance with Moneycontrol.

Within the July-September quarter, the financial progress slowed to a two-year low of 5.4 per cent. Within the earlier April-June quarter, the financial progress was 6.7 per cent. Within the July-September quarter the earlier yr, the financial progress was 8.1 per cent.

The low financial progress was credited to poor efficiency in manufacturing and mining sectors accompanied by weak consumption.

Sitharaman went on to say that she stays “optimistic about an enchancment in financial efficiency going forward”.

Sitharaman additionally defended the Narendra Modi authorities’s (2014-) file on inflation as in comparison with the earlier Congress-led authorities’s file (2004-14).

“The Centre is dedicated to higher managing meals inflation the place volatility in sure meals objects is climate pushed…Inflation has been higher managed underneath NDA regimes. Inflation was introduced again to five.1 per cent throughout 2014-2024. Inflation touched double digits throughout UPA instances,” stated Sitharaman.

After hitting a 14-month excessive of 6.21 per cent in October, the retail inflation eased to five.48 per cent in November, primarily due to the easing of meals costs, significantly the costs of greens. The meals inflation lowered to 9.04 per cent from 10.87 per cent the earlier month. The federal government prefers to have the inflation within the 2-6 per cent vary.