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Sitharaman Touts External Resilience, Warns on State Debt, Plans GDP Base‑Year Reset

She used the supplementary grants debate to cite low external gaps as proof of a sturdier economy.

Overview

  • India's current account deficit stands at 0.6% of GDP for FY25, with reserves covering about 11.4 months of imports by June and described as not reliant on volatile inflows.
  • Sitharaman said the Centre has lowered the pandemic‑widened fiscal deficit, but warned that many states' debt‑to‑GSDP is climbing and called for joint consolidation.
  • She said the base year for GDP will be updated next year following scrutiny of national accounts and questions raised about measurement.
  • The minister defended supplementary demands as necessary for responsiveness, noting the government now limits them to a maximum of two per year.
  • Congress MP K. C. Venugopal flagged the rupee near 90 per dollar and cited IMF concerns over GDP data, while the minister pointed to 8.2% September‑quarter growth and recent sovereign rating upgrades.