Get All Access for $5/mo

Sitharaman Attributes Reduced Capital Expenditure for Q2 Slowdown, Believes Q3 to Make Up for the Slump Finance Minister Nirmala Sitharaman addressed concerns about the recent economic slowdown at a recent event saying the slump is only temporary, attributing it to reduced public and capital spend, and added that the third quarter will compensate for the slowdown.

By Entrepreneur Staff

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Nirmala Sitharaman

Finance Minister Nirmala Sitharaman addressed concerns about the recent economic slowdown at a recent event saying the slump is only temporary, attributing it to reduced public and capital spend, and added that the third quarter will compensate for the slowdown.

The country's economy grew only by 5.4 per cent recording a seven-quarter-low. The slowdown followed a 6.7 per cent growth in the first quarter, largely affected by the general capital expenditure. Reports indicate the government has spent only close to 37.3 per cent of its capital expense budget for the financial year so far. The Reserve Bank of India (RBI) also reduced its yearly growth forecast from 7.2 per cent to 6.6 per cent.

"This is not a systemic slowdown and is more because of the absence of activity on public expenditure, capital expenditure, and so on. I expect Q3 to make up for all these," Sitharaman stated.

Sitharaman said that the decreased global demand is affecting exports and potential stagnant wages are impacting consumption domestically. Despite the challenges, the finance minister believes India remains in the race among the fastest-growing economies, highlighting the improved purchasing power within the country.

Sitharaman also emphasized India's role on the global stage, particularly the country's advocacy for the 'Global South'. The finance minister also spoke about strong relationships with countries like Japan, highlighting the influence of people-to-people and business-to-business connections.

Entrepreneur Staff

Entrepreneur Staff

Editor

For more than 30 years, Entrepreneur has set the course for success for millions of entrepreneurs and small business owners. We'll teach you the secrets of the winners and give you exactly what you need to lay the groundwork for success.
Business News

These Companies Offer the Best Work-Life Balance, According to Employees

The ranking is based on Glassdoor ratings and reviews.

Business News

Apple Is Adding ChatGPT to iPhones This Week. Here's How It Works.

ChatGPT will take over questions that Siri can't answer.

Growing a Business

How to Spot Trends and Anticipate Market Shifts Before Your Competition

Discover how to identify disruptive trends before your competitors by mastering the art of anticipating market shifts. Learn strategies for staying ahead and gaining a competitive edge in business.

Growing a Business

Why Business Owners Should Streamline Their Operations Now for Success in 2025

As the holiday season and year-end approach, business owners face heightened operational demands, from inventory management to spend control. By streamlining these processes and partnering with flexible suppliers, businesses can maintain efficiency, meet customer needs and focus on growth while navigating this busy period.

Leadership

As a Leader, Take These 5 Steps to Bridge the Gap Between Innovation and Execution

Companies that want to turn ideas into action must align their people and listen to their customers.