Context:
India’s GDP growth slowed to 5.4% in Q2 2024-25, attributed to temporary factors.
Relevance: GS 3 (Economy)
- Temporary Nature: Sitharaman linked the slowdown to general elections and festival timing.
- Growth Context: India remains the fastest-growing major economy, averaging 8.3% growth over three years.
- Manufacturing Resilience: 50% of IIP sectors remain robust; capital expenditure rose by 6.4%.
- Inflation Control: Food inflation tackled via buffer stocks and subsidies.
- Festival Impact: Uneven consumer spending due to festival alignment.
