India's Q2 growth highest in the world: Nirmala Sitharaman
Finance Minister Nirmala Sitharaman announced on Thursday that India's second-quarter growth is the highest globally, making India the fastest-growing economy. She pointed out that while Japan and Germany, the third and fourth largest economies, have contracted, India's growth of over 7% is noteworthy. Sitharaman addressed the Rajya Sabha during the Winter Session of Parliament, engaging in a three-day discussion on the country's economic situation with numerous members.
Economic activity flourishing across sectors
Sitharaman emphasized the strong economic activity across various sectors, with all segments experiencing significant growth. She credited this progress to the central government's policies, including the Make in India program and Prime Minister Narendra Modi's schemes. The Finance Minister also shared that direct tax collection increased by 21.82% this year, and monthly GST collections stabilized at Rs. 1.6 lakh crore, signaling economic growth.
Manufacturing sector contributes nearly 14% to India's economy
Sitharaman stated that the manufacturing sector contributes 13.9% to India's economy due to measures like Production-Linked Incentive (PLI) schemes. She mentioned that India is now the second-most sought-after manufacturing destination in the world. Additionally, she highlighted that the Purchasing Managers Index (PMI) for November was 56, indicating expansionary territory and sustained growth. In contrast, developed economies are showing a contractionary manufacturing PMI.
India's GDP growth and merchandise export increases
Sitharaman informed that the Indian economy grew by 7.6% during the July-September quarter of FY24 and 7.8% in the April-June quarter of FY24. She also mentioned that India's merchandise export increased by 6.21% to $33.57 billion in October. The Finance Minister refuted allegations by the Congress party that the government has been unwilling to hold debates on the economy, citing past discussions as evidence of the government's openness to dialogue.
