Finance Minister Nirmala Sitharaman Addresses Economic Slowdown in Q2

In a recent statement, Finance Minister Nirmala Sitharaman referred to the economic slowdown in the second quarter as a 'temporary blip'. She emphasized that the Indian economy is poised for healthy growth in the upcoming quarters, despite the challenges faced in Q2.

Sitharaman's comments came during her response to the debate on the first batch of Supplementary Demands for Grants in Lok Sabha. She sought to assure lawmakers that the growth trajectory remains on track, despite the 5.4% growth recorded in the July-Sept quarter, which marked a 7-quarter low.

Government's Inflation Management and Manufacturing Sector Outlook

Highlighting the government's inflation management, Sitharaman noted that retail inflation between April-Oct was at 4.8%, the lowest since the Covid-19 pandemic. Core inflation, excluding volatile food and fuel, was at a decadal low of 3.6%. She also pointed out that while some segments of the manufacturing sector are facing challenges, about half of the 23 sectors remain strong.

The finance minister expressed optimism about the economy's future performance, citing the government's capital expenditure growth of 6.4% between July and October. With a budgeted capital expenditure of over Rs 11.1 lakh crore for the current fiscal year, Sitharaman reaffirmed the government's commitment to managing food inflation and other supply-side measures.