Daijiworld Media Network - New Delhi

New Delhi, Dec 8: Finance minister Nirmala Sitharaman informed Parliament on Monday that the government is pursuing a multi-pronged strategy to stimulate consumption in the economy, combining demand-supporting measures, income-enhancing supply-side initiatives, and structural reforms to drive GDP growth.

In a written reply to the Lok Sabha, she highlighted key policy measures such as the new income tax exemption for annual incomes up to Rs 12 lac, recent GST rate cuts, emphasis on ease of doing business, skilling programs, employment generation, infrastructure development, and expanded credit access through schemes like MUDRA and PM SVANidhi. These initiatives are aimed at boosting consumption across both rural and urban areas.

Urban-focused measures, including livelihood and skilling programs, tax reliefs, and expansion of digital payments, are expected to strengthen consumption in cities. In rural areas, programs such as PM-KISAN, Mahatma Gandhi National Rural Employment Guarantee Scheme, PM Awas Yojana (Gramin), agri-productivity missions, and Self Help Group-based livelihood initiatives are designed to enhance incomes and ensure broad-based economic participation.

Sitharaman noted that higher consumption demand will support household incomes, encourage private investment, and reinforce overall economic growth.

Citing National Statistics Office (NSO) data, she said the share of Private Final Consumption Expenditure (PFCE) in GDP increased from 62.2% in Q2 of 2024-25 to 62.5% in Q2 of 2025-26, with its growth in constant prices rising from 6.4% to 7.9% during the same period.

GDP at constant prices is estimated to have grown 8.2% in Q2 of 2025-26, compared with 5.6% in Q2 of 2024-25 and 7.8% in Q1 of 2025-26, reflecting accelerating growth momentum in the economy, the Finance Minister added.