Growth down, but there is no recession in Indian economy: FM Nirmala Sitharaman
New Delhi, Nov 27: Finance Minister Nirmala Sitharaman on Wednesday launched a spirited defence of her handling of the economy, comparing macroeconomic indicators with past Congress rules and said the growth may have slowed down but the economy will never slip into recession.
Replying to a short-duration discussion on the state of the economy in the Rajya Sabha, she said steps taken by the government post her maiden budget have started bearing fruits and some sectors such as automobiles have shown signs of recovery.
Allaying concerns over revenue position of the government, she said direct tax and GST collections have both seen an increase in the first seven months of the current fiscal when compared to the same period of the last year.
The Congress, the TMC and the Left parties, however, staged a walkout of the House saying she was reading out her budget speech rather than addressing issues facing the economy.
"Every step being taken is in the interest of the country. Looking at the economy in discerning view, you see that growth may have come down but it is not recession yet, it won't be recession ever," she said.
She then went on to compare GDP growth during the Narendra Modi-led BJP government since 2014 and that witnessed in the previous five years under the UPA-II regime, saying inflation was below the targeted range, economic expansion was much better and so were other macroeconomic indicators.
India's growth outlook has weakened sharply this year, with a crunch that started with the non-banking finance institutions spreading to retail businesses, car-makers, home sales and heavy industries.
The Indian economy expanded by 5 per cent in April-June, its slowest annual pace since 2013 and the projections are that it may have slowed down further in the second quarter, making six consecutive quarters of slowing growth, a first since 2012.
This despite a recent series of fiscal stimulus, including a reduction in corporate tax rates.
Sitharaman blamed the fall in GDP growth in the last two financial years to the lagged effect of twin balance sheet crisis of stress on banks due to non-performing assets (NPAs) or bad loans on the one hand and heavily indebted corporates on the other, resulting from the UPA regime lending.
Rejecting criticism that her maiden budget on July 5 had failed to address concerns of a slowing economy and so had to resort to announcing measures within a month of the passing of the budget by Parliament, she said the Economic Survey and she had recognised the need for recapitalisation of bank and reforms in her budget speech.
Capital infusion of Rs 70,000 crore in banks, flowing from that speech, had led to rise in the ability of banks to lend and over Rs 2.5 lakh crore has been given in loans during the recent outreach programme, she said.
The finance minister did not see a problem of liquidity that forced the slowing of the economy but that of the flow of funds.
Reforms such as Insolvency and Bankruptcy Code are yielding results.
On the Goods and Services Tax (GST), she said out of the Rs 6.63 lakh crore net collections targeted in the year through March 31, 2020, Rs 3.26 lakh crore had been collected during April to October. Month-wise GST collections have grown year-on-year, she said, adding direct tax collections at Rs 6.86 lakh crore in April-October too had seen a growth of 4.8 per cent.
"GST is not doing badly. It could do better," she said.
She reeled out numbers to defend the economic track record and said the direct tax-to-GDP ratio has risen from 5.5 per cent in 2014-15 to 5.98 per cent in 2018-19.
Also, revenue receipts have grown by 18 per cent, revenue expenditure by 13.97 per cent and capital expenditure by 15.31 per cent in the first half of this year.
Is "everything is coming down, not at all," she said. "We are conscious of the challenges faced by sectors... we shall ensure every sector and challenges are heard by us."
She said Prime Minister Modi himself was taking personal interest "so that economy can be on a higher trajectory."
As many as 32 steps have been announced post-July 5 budget to revive growth and are bearing fruits, the minister said.
FDI inflows in 2009-14 were USD 189.5 billion and the same were USD 283.9 billion under BJP rule in the following five years, she said, adding foreign exchange reserves rose to USD 412.6 billion under BJP from USD 304.2 billion in UPA-II.
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Akash Singh says signature celebration fuels motivation, reinforces dominance
Lucknow (PTI): Pacer Akash Singh caught the eye with his unique celebration during Lucknow Super Giants' win over Chennai Super Kings, pulling out a piece of paper from his pocket after a wicket, a gesture he said was aimed at "motivating" himself and "asserting dominance" over batters.
The left-arm pacer pulled out a scrappy piece of paper after each of the three wickets he took in LSG seven-wicket win over CSK, with the message reading: "Akki on fire -- Akash knows how to take wickets in T20 cricket.
The 24-year-old, who began his IPL journey with Rajasthan Royals and was part of Chennai Super Kings’ title-winning campaign in 2023 before moving to Lucknow Super Giants, registered his best IPL figures with 3 for 26 on Friday.
"'Akki knows how to take wickets in T20 cricket', right?" Akash said when asked about the message on the piece of paper, adding that it serves as a source of motivation and helps him focus on dominating batters and delivering stronger performances for the team.
"Different things motivate different people. Some days I show the paper, some days I don't, but it reflects my mindset on that particular day. When you carry a piece of paper with something written on it, you manifest things and the most important part is when those manifestations actually materialise," he added.
Akash, who hails from Bharatpur in Rajasthan, said the strong backing from the Lucknow Super Giants support staff over the last two years had played a huge role in his growth as a cricketer.
"I've been with LSG for two years and the most important thing has been the backing from the coaches, even when I'm not in the playing XI. This year we have Bharat Arun sir, last year Zaheer sir was there...Tom Moody. The way they guide us, prepare us and keep us ready for opportunities is very important when there are 25 players in the squad," he said.
"When you are not playing, you naturally seek backing and every player wants to make the most of the opportunities he gets. The support from the captain also matters a lot and with Rishabh bhaiya backing you, the confidence grows and you are able to perform better," Akash said, referring to Rishabh Pant.
Akash said Pant had asked him to trust his strengths ahead of the clash against CSK.
"He told me that the new ball is my strength and that I can swing it both ways. So I just tried to make the best use of my skills. The wicket also had good bounce, so I focused on using the bouncer effectively,” added Akash.
On his success against CSK, Akash said his experience of playing in the IPL since 2020, including a stint with CSK, helped him understand the opposition batters better, while backing his own strengths with the ball also played a key role in his impressive spell.
"Obviously, when you play in the IPL and have shared the dressing room with some players, you understand their strengths and weaknesses. My focus was first to back my own strengths, then exploit their weaknesses and also make the best use of what the wicket was offering," Akash said.
Akash said he had sensed over the last two-three games that an opportunity could come his way after being repeatedly told to "be ready", though he admitted he was unfortunate not to get a chance earlier.
"Two days before the match, during practice, I was told to be ready," he said.
Clarifying that he had not been carrying the piece of paper in anticipation, Akash said he often notes down thoughts that could help improve his game..
"Whenever I’m alone or about to sleep, any thought that comes to my mind which can help my cricket, I write it down. The other night I got this thought and jotted it down on paper," he added.
