BAJAJ BROKING
Finance Minister Nirmala Sitharaman expects India's GDP to recover in Q2 and Q3 2024, driven by higher government capital expenditure. Delays due to elections impacted Q1 growth, but expenditure is set to rise, boosting the economy.
Finance Minister Nirmala Sitharaman expressed optimism that India's economic growth will recover in the second (Q2) and third (Q3) quarters of the fiscal year, thanks to increased government capital expenditure. This statement was made at the News18 India Chaupal event, where Sitharaman discussed the country's economic outlook and the factors that influenced muted growth in Q1.
The Finance Minister attributed the slower growth in Q1 to delays in government spending caused by the election season. Election-related constraints limited the capital expenditure that typically drives growth, leading to lower-than-expected economic performance. However, Sitharaman reassured that this slowdown is temporary and the economy will see a significant boost as government spending ramps up in the coming quarters.
Sitharaman emphasised the importance of capital expenditure in stimulating the economy, particularly in infrastructure projects and development initiatives. With Q2 and Q3 expected to see a surge in capital spending, she expressed confidence that the GDP growth rate will improve, countering the slower performance of Q1. Increased expenditure on projects will help address concerns of slowing growth, as alleged by critics.
Despite the focus on increased spending, the Finance Minister maintained the government's commitment to fiscal discipline. She reiterated that the government is on track to reduce the fiscal deficit to 4.5% of GDP by the next fiscal year. This balance between capital expenditure and fiscal responsibility is central to the government's broader economic strategy.
Sitharaman also addressed the government's ongoing reform agenda, stating that systemic reforms will continue without interruption. Reforms related to taxation, pensions, and other welfare schemes remain in place, designed to create a more robust economic environment that supports long-term growth. Tax reforms, in particular, aim to simplify the system and provide relief to the middle class.
Regarding inflation and potential interest rate cuts, Sitharaman deferred to the Reserve Bank of India (RBI), acknowledging its role in balancing growth and inflation control. The RBI’s analysis will guide future decisions related to interest rates, with the broader economic outlook and inflation trends considered in the decision-making process.
Finance Minister Nirmala Sitharaman’s confidence in a better GDP performance in Q2 and Q3 underscores the critical role of capital expenditure in driving India’s economic recovery. The government's focus on increased spending, while maintaining fiscal discipline, sets the stage for a stronger performance in the coming quarters.
Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.
This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.
For All Disclaimers Click Here: https://bit.ly/3Tcsfuc
Tata Power's solar plant fully operational by October
18 Sep, 2024 | 4 Min. read
Commodities Market Today | WTI and Brent Rise, Gold and Silver Dip in Trading
18 Sep, 2024 | 1 Min. read
Share Market Today | Nifty Expected to Open Flat, Range-Bound Trading Ahead
18 Sep, 2024 | 4 Min. read
Gold Rate Today | Gold Falls 0.5%, Silver Down 0.3% in Market
18 Sep, 2024 | 2 Min. read
Titan's jewellery sales soar in luxury range
18 Sep, 2024 | 4 Min. read
Hindalco's new solar plant set for Gujarat
18 Sep, 2024 | 4 Min. read
India-EU FTA discussions set for September
18 Sep, 2024 | 4 Min. read
Fed Rate Cut Speculation Amid FOMC Meeting and Key Global Events
18 Sep, 2024 | 4 Min. read
Phoenix Overseas IPO Price, Date, Analysis & How to Apply
18 Sep, 2024 | 4 Min. read
Avax Apparels and Ornaments IPO Price, Date, Objective & Analysis
18 Sep, 2024 | 4 Min. read
Samvardhana Motherson launches QIP to raise ₹6,398.6 crore
17 Sep, 2024 | 4 Min. read
SEBI implements T+2 bonus share trading from October 1
17 Sep, 2024 | 4 Min. read
Analysis to Become a Pro Investor
28 Dec, 2023 | 4 Min. read
Women In Real Estate Investing (Investree)
28 Dec, 2023 | 5 Min. read
How To Check Prudent Corporate Advisory IPO Allotment Status
27 Dec, 2023 | 3 Min. read
How To Boost Credit Score? – Steps to Improve Creditworthiness
27 Dec, 2023 | 4 Min. read
Advantages and Disadvantages of Opening Multiple Demat Accounts
26 Dec, 2023 | 4 Min. read
7th CPC LTC: Leave Travel Concession Rules for Central Government Employees
26 Dec, 2023 | 4 Min. read
7th Pay Commission: House Building Advance (HBA) Interest Rate FY 2023-24
26 Dec, 2023 | 5 Min. read
The Future of Trading: Exploring Bajaj Broking’s Demat Features
26 Dec, 2023 | 6 Min. read
7th Central Pay Commission Cpc Fitment Table
23 Dec, 2023 | 7 Min. read
Level up your stock market experience: Download the Bajaj Broking App for effortless investing and trading