GDP ‘Near Zero’ Today, India Among Fastest Growing Economy Next Year: Nirmala Sitharaman

New Delhi: Union Finance Minister Nirmala Sitharaman said that the Gross Domestic Product’s (GDP) growth rate is likely to be “near zero” this fiscal year.

But, with indications of revival in economy, India could well be one of the fastest-growing large economies in the next fiscal, according to the finance minister. Sitharaman said this while addressing the CERAWeek India Energy Forum.

Sitharaman’s comments come in the wake of International Monetary Fund’s (IMF) projection of India’s GDP contraction of 10.3 per cent this fiscal, revised from its forecast of a 4.5 per cent downslide in June, according to Business Standard.

India was the fastest-growing large economy, but was overtaken by China. Indian economy grew 4.2 per cent in 2019-20 while China expanded 6 per cent in the same time period.

The finance minister highlighted foreign direct investment (FDI) inflow between April and August as an evidence of revival. “During this period, FDI inflows grew by around 13 per cent compared to a non-Covid 2019. Such an increase never happened in India’s case,” she said.

“We can see a revival, particularly in terms of the PMI. There was a spurt in numbers as it was the highest after 2012. This indicates that the revival is steady and sustainable. This sustainable revival will happen in Q3 and Q4,” the finance minister was quoted as saying by Business Standard.