Indian economy is hardly ‘dead’, it is the fastest-growing, asserts FM Sitharaman

Union Finance Minister Nirmala Sitharaman
| Photo Credit:
ANI

Responding obliquely without naming US President Donald Trump who said India is a “dead” economy, Finance Minister Nirmala Sitharaman on Monday said that it continues to be one of the fastest-growing major economies globally. Meanwhile, Lok Sabha approved first Supplementary Demands for Grants permitting fresh cash outgo of over ₹41,000 crore.

Replying to the debate on supplementary demand for grants in the Lok Sabha, the FM said global economic growth is currently around 3.2 per cent, while India recorded an 8.2 per cent growth in the last quarter.

“Global growth today stands at 3.2 per cent. India, on the other hand, grew by 8.2 per cent in the last quarter,” she said. Addressing concerns over India’s national accounts, Sitharaman clarified that the International Monetary Fund (IMF) had accorded a ‘C’ grade due to the use of an old base year, not because of weak economic fundamentals.

“The IMF has given a C grade to our national accounts only because the base year is old. It is a technical issue, not a reflection of India’s growth strength,” she told the House. She also highlighted that India’s economic expansion has become broad-based over the past decade, spanning multiple sectors. “Growth has become quite broad-based in the last ten years,” she said, adding that structural reforms and sustained investment have helped strengthen the economy.

fertilizer & oil

Under the first Supplementary Demands for Grants (SDG) , the Government has sought Parliament’s approval for a fresh cash outgo of over ₹41,500 crore, mainly for additional fertilizer subsidies and payments to oil marketing companies towards under-recoveries on LPG. The first batch of SDG involves a gross additional expenditure of over ₹1.32 lakh crore, out of which over ₹90,000 crore to be met through savings across different ministries. Notably, the fresh cash outgo is unlikely to have any impact on the overall fiscal deficit number, which has been pegged at 4.4 per cent of GDP.

According to the SDG document, out of the fresh cash outgo, over ₹18,500 crore will be spent on fertilizers. This includes subsidies for indigenous and imported P&K fertilizers as well as imported urea. An additional ₹12,500 crore requirement will be met through savings. Another key component of the fresh cash outgo is the compensation to Public Sector Undertaking (PSU) Oil Marketing Companies for under-recoveries in domestic LPG and related programmes. For this, over ₹9,400 crore has been earmarked, while an additional over ₹5,200 crore under this head will be met through savings.

Further, an allocation of over ₹2,500 crore under fresh cash outgo has been marked for Ladakh, which will be used for meeting additional expenditure towards the transfer to the Union Territory of Jammu & Kashmir, on account of apportionment of liabilities between the two UTs. Also, over ₹2,100 crore of fresh cash will be given to Manipur as a part of a development package.

Published on December 15, 2025