GDP growth slowing down to 5.4% in Q2 is only a 'blip': FM

Nirmala Sitharaman expressed confidence that the economy would bounce back

- Gireesh Chandra Prasad & Nikita Prasad

Finance minister Nirmala Sitharaman on Tuesday said the economic expansion rate in the last three years had averaged 8.3% and that the "slower than expected" 5.4% growth in the September quarter, which followed the quarter in which national polls were held, should not be the basis for forecasting future growth.

She said the gross domestic product (GDP) growth of 5.4% in the second quarter of the current fiscal year (Q2FY25) was only a "temporary blip", and expressed confidence that the economy would bounce back and record a healthy growth in the coming quarters.

Responding to a debate in the Lok Sabha, Sitharaman said India has seen "steady and sustained" growth and its GDP growth rate has averaged 8.3% in the last three years.

"The real growth rate for Q1 and Q2 has been 6.7% and 5.4%, respectively. At 5.4%, the Q2 rate is slower than expected. Q2 of this financial year has been a challenging quarter for India and most other world economies," said the finance minister.