Lok Sabha Question No. 342 (STARRED), answered on 2025-08-18
Subject: Economic Volatility
Ministry: FINANCE
Asked by: Shri Zia Ur Rehman

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF ECONOMIC AFFAIRS

## LOK SABHA STARRED QUESTION NO. *342

TO BE ANSWERED ON 18.08.2025/ Sravana 27, 1947 (Saka)

## ECONOMIC VOLATILITY

## *342. Shri Zia Ur Rehman:

Will the Minister of FINANCE be pleased to state:

- (a) whether  the  Government  is  aware  of  the  rising  fiscal  deficit,  increasing  inflation  and  the economic  impact  of  global  uncertainties  such  as  geopolitical  tensions  and  supply  chain disruptions on the Indian economy;
- (b) if  so,  the  details  of  the  steps  taken/being  taken  by  the  Government  to  protect  vulnerable sections of society from the adverse effects of economic volatility; and
- (c) if not, the reasons therefor?

## ANSWER

THE FINANCE MINISTER

(SMT. NIRMALA SITHARAMAN)

- (a) to (c): A statement is laid on the Table of the House.

## STATEMENT REFERRED TO IN REPLY TO THE LOK SABHA STARRED QUESTION NO. *342, RAISED BY SHRI ZIA UR REHMAN FOR 18 th  AUGUST, 2025 ON ECONOMIC VOLATILITY

(a): Despite an environment of unprecedented geopolitical uncertainty, supply chain disruptions, and a weak global growth outlook, the Indian economy has exhibited resilience, underpinned by prudent macroeconomic management, credible fiscal consolidation, a resilient external sector performance and sustained structural reforms. India remains the fastest-growing major economy, registering  a  real  GDP  growth  of  6.5  per  cent  in  2024-25.  The  fiscal  deficit  of  the  Union Government has reduced from 9.2 per cent of GDP in 2020-21 to 4.8 per cent of GDP in 2024-25, and is budgeted to further reduce to 4.4 per cent of GDP in 2025-26. The average retail inflation rate, measured by the Consumer Price Index, stood at 4.6 per cent in 2024-25, the lowest in the last six years, and has eased further to 2.4 per cent in April-July 2025. Despite the weakened global trade, India's export performance has demonstrated resilience, with the country's overall exports reaching an all-time high of USD 824.96 billion in 2024-25. This positive trend has continued into the current fiscal  year,  with  overall  exports  registering  an  increase  of  5.46  per  cent  during  the  first  quarter. Furthermore, India's foreign exchange reserves provide a cover for more than 11 months of goods imports. This consistent macroeconomic performance underscores the Indian economy's ability to navigate global and economic uncertainties effectively.

(b) & (c): The Government has undertaken concerted measures aimed at protecting vulnerable sections  of  society  from  the  adverse  effects  of  economic  volatility  while  sustaining  the momentum  of  broad-based  and  inclusive  economic  growth.  Flagship  schemes  such  as  the Pradhan Mantri Garib Kalyan Anna Yojana, Pradhan Mantri Kisan Samman Nidhi (PM-KISAN), Mahatma  Gandhi  National  Rural  Employment  Guarantee  Scheme  (MGNREGS),  Pradhan Mantri Awas Yojana (PMAY), Deen Dayal Upadhyaya Grameen Kaushalya Yojana, Stand Up India Scheme, and the Deendayal Antyodaya Yojana-National Rural Livelihoods Mission are being implemented  to  ensure  access  to  the  basic  essentials,  enhance  livelihood  opportunities,  and improve  the  quality  of  life  for  the  vulnerable  sections.  Additionally,  initiatives  in  skilling, entrepreneurship promotion, and social security further reinforce these efforts. In parallel, the Government has undertaken wide-ranging measures to stimulate economic growth, including enhanced  capital expenditure, infrastructure development,  financial sector reforms,  and initiatives to improve the ease of doing business.