New Delhi: Union Minister of Finance Nirmala Sitharaman on Wednesday during a debate hour in Rajya Sabha said the economic condition of the country might have come down with the report of 5% GDP, but it is not yet in the recession period.
“India’s real Gross Domestic Product (GDP) growth was at 6.4% at the end of 2009-2014, whereas between 2014-2019, it was at 7.5%,” she said.
Reiterating the status of the economy of the country, she said, “If you are looking at the economy with a discerning view, you will definitely see that the growth may have come down, but it is not a recession yet, and moreover, there will never ever be any recession.”
Answering questions raised by Congress leader Anand Sharma in Rajya Sabha, Sitharaman said that she will place before the House every step her ministry has taken to revive the economy of the country. “I will place on record every step that is being taken by the Finance Ministry,” she added.
Comparing the inflation and foreign direct investment (FDI) figures between the NDA government’s time and the previous UPA administration time, she said, the FDI inflow has significantly improved to $283.9 billion in 2019, from $189.5 billion in 2009-2014.
She also informed the House that her ministry will release the data on the gross domestic product (GDP) on Friday evening. “A number of economists and financial institutions have lowered their growth projections of GDP for this year ending in March 2020,” she added.
The statement from the finance minister comes after Congress leader Anand Sharma on Wednesday raised questions on the government’s move to slash corporate tax and its privatisation overdrive.
Expressing serious doubt over reduction in corporate tax as a step to boosting the economy, Sharma said companies would use the tax bonanza to retire their old debts and deleverage. “Further, they would not use the money to make investments when there was no demand in the market,” he added.
In October this year, Fitch Ratings had slashed India’s GDP growth forecast to 5.5 per cent and said a large credit squeeze emanating from shadow banks is the reason behind the slow economic growth of the country.
In the same month, Moody’s Investors Service also projected India’s growth forecast for the fiscal year 2019-20 and slashed the GDP growth rate to 5.8 percent.