Even though the gross domestic product (GDP) growth might have slowed, the country had not entered a recessionary phase, said Finance Minister Nirmala Sitharaman in Parliament on Wednesday.

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Speaking in the Rajya Sabha during a debate on the state of economy, Sitharaman said the economy needed a lot of support and every step taken by the government was for its development.

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Regarding the high NPAs (non-performing assets) in the banking sector, she said it started increasing after the lenders begun recognising bad loans.

Provisioning for bad loans didn`t mean "writing-off" these NPAs, she added.