Indian financial system has means to maintain quick development regardless of international turmoil: Finance Ministry

In a written reply, minister of state for finance Pankaj Chaudhary additionally stated India’s financial development of seven.6% within the second quarter of FY24 beat essentially the most optimistic projections. “The true GDP development in Q2 of 2023-24 was not solely increased than the median projections of 6.8% by skilled forecasters but additionally their highest estimate of seven.4%,” Chaudhary stated.

Whereas manufacturing expanded 13.9% within the second quarter, the farm and allied sector grew just one.2%. “(Nonetheless) Ample reservoir ranges, enough availability of fertiliser and seeds, rising tractor gross sales and increasing credit score assist to the agriculture sector augur properly for wholesome rabi sowing within the present season,” the minister stated.

Chaudhary additionally stated whereas gross home product (GDP) contracted 5.8% within the wake of the pandemic in 2020-21, it grew 9.1% in 2021-22, “utterly recovering the pre-pandemic GDP stage”.

India additionally remained the fastest-growing main financial system in 2022-23 with a 7.2% growth, a lot increased than the expansion witnessed in main superior economies and rising market economies, Chaudhary added.

“This highlights the flexibility of the Indian financial system to maintain sturdy development regardless of geo-political headwinds,” he stated.The federal government, Chaudhary pressured, has initiated a raft of steps over the previous 9 years to spice up development. These embody measures aimed toward formalisation of the financial system, enhancing credit score for small and medium companies, enhancing ease of doing enterprise, facilitating financial alternatives for all, and strengthening the banking sector.The measures such because the launch of Make in India to spice up manufacturing, Begin-up India to construct an ecosystem for nurturing innovation and start-ups, the introduction of the Insolvency and Chapter Code for a time-bound decision of pressured property, rationalisation of labour legal guidelines, discount within the company tax price and the introduction of the Items and Companies Tax have “supplied a big alternative to enhance development momentum by lowering obstacles to commerce, enterprise, and associated financial actions”, Chaudhary stated.