Finance minister Nirmala Sitharaman said the Indian economy may be facing a slowdown but there’s no danger of a recession taking hold. The government will make policy changes as and when required.
“Every step being taken is in the interest of the country,” the minister said in her reply to a discussion on the economic situation in the upper house of Parliament on Wednesday. “Looking at the economy in discerning view, you see that growth may have come down but it is not recession yet; it t won’t be recession ever.”
A recession is typically defined as two successive quarters of negative growth.
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Sitharaman blamed the slowing of GDP growth in the last two financial years on the lagged effect of the so-called twin balance sheet crisis — stress on banks due to nonperforming assets (NPAs) or bad loans on the one hand and heavily indebted corporates on the other. She blamed this on the Congress-led UPA government’s policies.
Source: Economic Times