Simply putting money in people’s hands to increase consumption won’t suffice. That is also significant, but Sitharaman informs the Lok Sabha that capital expenditures have a greater multiplier effect on the economy.
On December 17, Finance Minister Nirmala Sitharaman informed the Lok Sabha that the government thinks the Q2FY25 slowdown in GDP growth “is a temporary blip” and that the next quarters will see an improvement.
In response to the Lok Sabha’s discussion on Supplementary Demands for Grants-First Batch 2024-25, Sitharaman stated, “The government believes that the Q2 GDP growth slowdown is a temporary blip, and we will see an improvement in the coming quarters.”
FM Sitharaman admitted that India and the majority of the world’s economies have faced difficulties during the second quarter of the current fiscal year.
But over the past three years, India’s GDP has grown at an average rate of 8.3 percent, which is remarkable by international standards. “This further solidifies India’s standing as the world’s fastest-growing major economy,” she said.
