'Economic Growth Is Down But We Aren't Facing Recession': Nirmala Sitharaman In Rajya Sabha

"India's real GDP growth was at 6.4 per cent at the end of 2009-2014, whereas between 2014-2019 it was at 7.5 per cent," Sitharaman said adding that economic growth may have slowed but there is no recession, there can be no recession.

Nirmala Sitharaman said that every step taken by the government is towards the development of the economy. (File Photo/ Getty)

New Delhi: India's economic growth may have come down but the country is not facing recession, said Union Finance Minister Nirmala Sitharaman in Rajya Sabha while responding to Opposition's attack on the slipping gross domestic product (GDP) growth and economic slowdown. "If you are looking at the economy with a discerning view, you see that growth may have come down but it is not a recession yet, it will not be a recession ever," Sitharaman said. Replying to a discussion on the economic situation in the country, the minister also reeled out numbers comparison between five years under Congress-led UPA-II regime from 2009 to 2014 and Bharatiya Janata Party's (BJP) first term from 2014 to 2019 to say inflation was lower and growth higher under the Modi government. "India's real GDP growth was at 6.4 per cent at the end of 2009-2014, whereas between 2014-2019 it was at 7.5 per cent," she said adding that economic growth may have slowed but there is no recession, there can be no recession. Foreign Direct Investment (FDI) inflows in 2009-14 were USD 189.5 billion and the same were USD 283.9 billion under BJP rule in the following five years, Sitharaman said, adding that the foreign exchange reserves rose to USD 412.6 billion under BJP from USD 304.2 billion in UPA-II. Replying to the questions pertaining to slowdown in economy over the past one year, the Finance Minister said that every step taken by the government is towards the development of the economy as it has to be given a lot of support. Allaying concerns over revenue position of the government, she said direct tax and GST collections have both seen an increase in the first seven months of the current fiscal when compared to the same period of the last year. The Congress, the TMC and the Left parties, however, staged a walkout of the House saying she was reading out her budget speech rather than addressing issues facing the economy. "It is the habit of opposition since 2014 to demand a discussion and then walk out when it is government's turn to reply. When I stand to give answers, they keep on making comments. If I continue, then they walk out. This is not good for democracy," Finance Minister said. Earlier in the day, Congress teared into the ruling party in the Upper House over the state of economy in the country and said that it is high time for the Modi government to wake up and take note of the 'real statistics' and act upon it to fix the issue. India's growth outlook has weakened sharply this year, with a crunch that started with the non-banking finance institutions spreading to retail businesses, car-makers, home sales and heavy industries. The Indian economy expanded by 5 per cent in April-June, its slowest annual pace since 2013 and the projections are that it may have slowed down further in the second quarter, making six consecutive quarters of slowing growth, a first since 2012. Sitharaman blamed the fall in GDP growth in the last two financial years to the lagged effect of twin balance sheet crisis of stress on banks due to non-performing assets (NPAs) or bad loans on the one hand and heavily indebted corporates on the other, resulting from the UPA regime lending. Rejecting criticism that her maiden budget on July 5 had failed to address concerns of a slowing economy and so had to resort to announcing measures within a month of the passing of the budget by Parliament, she said the Economic Survey and she had recognised the need for recapitalisation of bank and reforms in her budget speech. (With inputs from PTI)