Rising Fuel Prices A ‘Challenge’ To India’s Recovering Economy: Sitharaman
The nation’s gross domestic product is estimated to grow 9.5%, being the quickest among major economics
Mumbai: Amid increasing fuel prices in the country Finance Minister Nirmala Sitharaman in an interview, with New York talked about the challenges to the recovery that remain in the form of higher global commodity prices, which could fan inflation and upset the government’s spending plan in a nation.
Further Finance Minister said, “the emphasis on building health infrastructure will continue,” and so will government spending on capital expenditure and infrastructure, referring to fiscal measures to counter the impact of the Covid-19 outbreak.
“The challenge I will face, and the teams are also watching in the ministry, is the way the fuel prices are leading to a big crest. This uncertainty is a big element for me,” she said.
For now, Asia’s third-largest economy is on track to divest stakes in state-run entities, as well as measures to boost foreign debt inflows for capital to fund investments.
Sitharaman was also asked whether the listing of government-owned Life Insurance Corp. of India will happen this year. On which she replied, “We are pushing to have it done.”
Separately, she said the inclusion of the nation’s bonds into global indexes depends on India fulfilling certain processes, and the government is moving in that direction.
Further Finance Minister said that India is in no hurry to withdraw the pandemic-era stimulus and is ready to do more if required to support the nation’s economic recovery.
Sitharaman is due to present India’s annual budget on Feb 1. She echoed Reserve Bank of India Governor Shaktikanta Das’s sentiment on the need to keep policy easy as the economy makes its way out of the pandemic.
The nation’s gross domestic product is estimated to grow 9.5% in the year to March by the RBI, as well as the International Monetary Fund. This is the quickest pace among major economies after contracting 7.3% last year.
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