Lower Q2 GDP Growth A Temporary Blip; Assures Strong Economic Growth Ahead: FM Sitharaman

Finance Minister Nirmala Sitharaman on Tuesday said that the lower-than-expected GDP growth of 5.4 per cent in the second quarter was a "temporary blip" and assured that the economy is expected to grow in the upcoming quarters.

In response to a debate during the winter parliamentary session in Lok Sabha on the first batch of Supplementary Demands for Grants, she asserted that India has seen "steady and sustained" growth and its GDP growth rate has averaged 8.3 per cent in the last three years.

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

The finance minister further added that India continues to be the fastest-growing major economy in the world.

The Sitharaman also stated that there is no widespread slowdown in the manufacturing sector, with half of the sectors within it continuing to perform strongly.

The Indian economy grew 6.7 per cent in the first (April-June) quarter and 5.4 per cent in the July-September period.

She further added that the unemployment rate has come down from 6 per cent in 2017-18 to 3.2 per cent now.