Finance Minister Nirmala Sitharaman expressed optimism about India’s economic growth in Q3 and Q4 of 2024-25 due to the increased capex spending. Speaking at the event “Chaupal” of News 18, he said the centre is on track to meet the fiscal deficit target of 4.5% of GDP.

The GDP growth slowed to 6.7% in the Quarter ended in April- June 2024 down from 7.8% in January-March in 2024. FM Sitharaman attributed this dip to the subdued government spending due to the general election.

"Because of elections, the capital expenditure plans announced didn't find much expenditure happening in Q1, because every department was looking at the post-election time," said FM while speaking at the News 18 event.

FM reiterated the government’s commitment to tax reforms. She said the centre is exploring various avenues to benefit the middle class, especially through tax reductions. She pointed out that appx. 70 per cent of the taxpayers have adopted the tax regime.

FM highlighted that a Group of Ministers are working to rationalize the Goods and Services Tax (GST) by categorizing essential and non-essentials in separate categories and lowering the rates of essentials.

Sitharaman appealed to the market participants to be cautious with their investments against speculative activity.  "There needs to be a sense of caution in our minds, and we also need to make sure that people with their savings don't go to high fluctuating and high-risk ventures," she said.