Govt confident of economic rebound despite global challenges, says Piyush Goyal
- The latest government data showed that India's economic growth slowed to a near two-year low of 5.4% in the September quarter owing to weak performance in the manufacturing and mining sectors.
New Delhi: Despite global uncertainties owing to supply-chain disturbances following the Red Sea crisis, union commerce and industry minister Piyush Goyal has said he was confident that India's economic growth would be back on track by the end of the fiscal year. He also reiterated that India would remain the world's fastest-growing economy this year.
Speaking at Times Network’s India Economic Conclave on Thursday, Goyal said, "There was an election in the first quarter, and during that time, policymaking and decisions related to growth or infrastructure spending naturally slowed down, leading to a lag effect."
Responding to a question about the 5.4% GDP growth in the September quarter, Goyal said, "Based on the initial numbers for the third quarter, factors like festive spending, a rebound in rural growth, renewed traction in banking activity, and infrastructure spending getting back on track indicate positive momentum. By the time we close the financial year in March, we are likely to be back on track."
Growth at two-year low
The latest government data showed that India's economic growth slowed to a near two-year low in the September quarter owing to weak performance in the manufacturing and mining sectors. However, India remained the fastest-growing large economy. GDP had expanded by 8.1% in the same quarter of the previous fiscal year.
Despite this, India retained its position as the fastest-growing major economy, outpacing China, which recorded 4.6% GDP growth in the July-September quarter this year. The last time GDP growth was lower than 5.4% was in the third quarter (October-December) of FY23, when it came in at 4.3%.
Goyal also dismissed concerns raised by opposition parties, saying "negative and false narratives" would not deter India’s economic growth. He said, “We are committed to structural changes, whether it is passing the Waqf Bill to ensure fairness in policymaking or introducing the One Nation, One Election Bill to eliminate the continuous model code of conduct that stalls the nation’s growth. These are long-term reforms that are good for India, and we stand committed to them.”
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Business NewsEconomyGovt confident of economic rebound despite global challenges, says Piyush Goyal
First Published:12 Dec 2024, 04:50 PM IST
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