FM: Lower GDP growth in Q2 a temporary blip

Union finance minister Nirmala Sitharaman on Tuesday expressed confidence in India's economic growth, calling the second quarter growth rate of 5.4% a "temporary blip" and indicating accelerated capital investments in the second half of FY25, while addressing concerns about economic sustainability raised by parliamentarians.

- Rajeev Jayaswal

Responding to Members of Parliament (MPs) questioning whether India can maintain its projected growth rate between 6.5% and 7% this fiscal year, Sitharaman acknowledged Q2 FY25 "has been a challenging quarter" for India and globally. However, she emphasised the country's strong performance over a longer timeframe.

"In last three years, India's GDP growth rate has averaged 8.3%. This is outstanding," she said, comparing it to other major global economies. "India has been the fastest growing major economy in the world," she further said.