India’s Q2 growth has been highest in the world: Sitharaman

New Delhi:  Finance Minister Nirmala Sitharaman on Thursday said India’s second quarter growth (in the current fiscal year) has been the highest in the world and the economic activity has been good across sectors.

Addressing the Rajya Sabha during the Winter Session of the Parliament while replying to a debate on the economic situation in the country which was held over three days with the participation of many members, Sithraman said that the manufacturing sector has contributed significantly to the economy on the back of various measures like PLI schemes.

She also said that India is the second most sought after manufacturing destination in the world. She said that manufacturing sector contributes significantly to economy on the back of various measures like PLI scheme.

“All sectors are growing significantly. Because of the Make in India programme and Prime Minister Narendra Modi’s schemes, the manufacturing sector is also significantly contributing to the economy. The manufacturing sector is contributing 13.9 per cent to the economy. The Purchasing Managers Index (PMI) in November was 56. It is in the expansionary territory, so sustained growth is indicative of growth,” she said.

She further said that our second quarter growth has been very high and it is the highest in the world, and we continuously maintained that momentum of being the fastest-growing economy.

“During the same quarter – July to September, 2023, the third and fourth-largest economies of the world contracted. For India to reach 7.6 per cent in the second quarter, it’s a very significant number. In just last eight years, India has become the world’s fifth largest economy,” she told the House.

Meanwhile, former Finance Minister and Congress leader P Chidambaram in a post on ‘X’ said: “In her reply to the three-day debate, the Finance Minister did not provide a direct answer to three pointed questions: Will the GDP double to Rs 200 lakh crore (in constant prices) in the 10 years of the NDA government by 2023-24? According to the NFHS, the proportions of children malnourished, stunted and wasted are unacceptably high. Why? Why have net financial assets of households dipped to a historic low of 5.1 per cent?

“I hope the government will answer these questions and other questions raised by MPs some day,” Chidambaram said.

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