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Speaking at CNBC TV18’s Indian Business Leader Awards (IBLA) 2024, he stated, “The Indian economy doesn’t operate from quarter to quarter like stock markets. All macro data suggests the economy’s basic strength remains intact.”
Addressing the slower 5.4% GDP growth in Q2, Goyal explained that temporary factors, such as election spending disruptions, influenced the numbers. However, he assured that the economy remains on track for robust growth, “By the end of the year, we expect to grow quite decently and continue to be the world’s fastest-growing economy.”
Goyal pointed to promising signs of capex recovery in the third quarter. “Green shoots of greater capex spending are already visible in Q3. The Prime Minister himself is monitoring large projects through the Pragati initiative, ensuring that any obstructions to investments are addressed promptly,” he noted.
He emphasised the government’s focus on maintaining ease of doing business and strengthening economic fundamentals to sustain growth.
Union Minister Piyush Goyal expressed scepticism about the connection between interest rates and food inflation, stating that he finds it difficult to understand how changes in interest rates affect the demand for essentials like onions, tomatoes, and pulses.
He suggested that economists should evaluate the impact of high interest rates on food inflation and consider whether this traditional approach to inflation management remains effective in today’s context.
Goyal also credited the government’s focus on long-term investments in infrastructure and public welfare as key drivers of economic stability. “In the past 10 years, we have set India’s macroeconomic fundamentals right, made massive infrastructure investments, and ensured public welfare initiatives like free food grains and healthcare reach the most vulnerable.”
Reiterating India’s global leadership in growth, Goyal said, “The world recognises India as the growth engine of the global economy. We will stay the course, focusing on strong fundamentals while addressing emerging challenges.”
