Lower Q2 GDP Growth A 'Temporary Blip', Says FM Nirmala Sitharaman; Bullish On Upcoming Quarters

Finance Minister Nirmala Sitharaman, on Tuesday, said that the lower-than-expected GDP growth of 5.4 per cent in the second quarter of the ongoing fiscal was a 'temporary blip'. Replying to a debate in the Lok Sabha, Sitharaman added that the 'economy will see healthy growth in the coming quarters'.

India has seen steady and sustained growth and its GDP growth rate has averaged 8.3 per cent in the last three years, FM Sitharaman said, adding that India continues to be the fastest-growing major economy in the world.

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

In her response, FM Sitharaman further said that there is no broad-based slowdown in the manufacturing sector. Half of the sectors within the overall manufacturing basket continue to remain strong.

It may be noted that the Indian economy grew 6.7 per cent in the first (April-June) quarter and 5.4 per cent in the July-September period.

Retail inflation in April-October 2024-25 stood at 4.8 per cent, the lowest since the Covid pandemic, she noted.

Sitharaman said the unemployment rate has come down from 6 per cent in 2017-18 to 3.2 per cent now.