Hindustan Times ST (Mumbai) - Live
Growth is slow, but no chance of recession: FM
NEWDELHI: Finance minister NirmalaSitharamanacknowledged on Wednesday that growth had slowed, but ruled out the risk of the economy ever slipping into a recession, in a discussion on the state of the economy that prompted some unconvinced Opposition members to stage a noisy walkout from the Rajya Sabha.
“If you are looking at the economy with a discerning view, you see that growth may have come down but it is not a recession yet; it will not be a recession ever,” Sitharaman said in her reply to the debate.
Gross domestic product (GDP) growth accelerated from 6.4% at the end of 2009-2014 to 7.5% in 2014-2019, Sitharaman said, comparing growth in the first term of the Bharatiya Janata Party (BJP)-led National Democratic Alliance (NDA) government and the second term of itspredecessor, theCongress-led United Progressive Alliance (UPA).
Foreign direct investment (FDI) inflows from 2014-2019 rose to $283.9 billion under the NDA from $189.5 billion in the same period, And foreign exchange reserves rose to $412.6 billion from $304.2 billion.
Measures taken to boost economic growth are bearing fruit, Sitharaman said, adding that the slowdown was a cyclical phenomenon that would bottom out by March, in response to opposition members who warned that the economy was heading towards a crisis.
Economic growth slipped to 5% in the three months ended June, theslowestpacein25quarters, and the fifth consecutive quarter that it decelerated, as households cut spending.