As asserting that India is far from inflation and is in a strong economical position, Finance Minister Nirmala Sitharaman spoke in Rajya Sabha. However, FM also conceded that global factors have an impact on the Indian economy.
Indian Economic Position
‘Indian economy much better than the others,’ are the words exerted by FM Nirmala Sitharaman as a reply to a short debate.
During a Rajya Sabha session held on Tuesday, a short debate was initiated between Congress MP and FM. She pointed out that the government has taken all caution responsibly to safeguard the nation’s economy from global factors.
Rising from the troubles of the Covid pandemic and towards the implementation of welfare activities, she listed various measures taken by the government over the last two years.
Indian Rupee Fluctuations
During the question hour, FM Nirmala informed members that India’s economic position is strong and there is no fall in the Indian Rupee. Despite the rupee appreciating its value as compared to other currencies.
“Performance of the Indian rupee is much better than its peers,” the minister said.
Sitharaman informed that the Reserve Bank of India is continuously monitoring the progress of the Indian economy.” The RBI interventions are not so much to fix the value of the Indian rupee because it is free to find its own course,” the minister told the Rajya Sabha during Question hour.
NRI Citizens
On suggestions to make remittances for Non-Resident Indian (NRI) citizens, the minister assured to pass the suggestion as the final decision is taken by the RBI.
“We have withstood the impact of the US Fed’s decisions many decisions much better than any other peer currencies,” she handled the defense.
Indian Reserve
Talking about the Indian reserve, she said that the range is about $500 (billion). Comparing it to $571.56 billion reserves on July 22, the amount is not small, and India is in a risk-free position.
“The RBI interventions are not so much to fix the value of the Indian rupee because it is free to find its own course,” as her reply to the house.
Control Over Inflation
Nirmala Sitharaman acknowledged that nobody is denying the situation of the economy now and all the sectors of government and RBI have kept the inflation under control. Constant checking of the money flow is prevalent, and India is far from any inflation for now.
During the Rajya Sabha debate, she said,
“The Indian economy is in a better situation compared to the economies of developed nations. But that does not mean the government is running away from saying..because of imported inflation and the global commodity crisis, we are being impacted. These are the realities. Nobody is in denial about the price rise.”
Ease Inflation Below 7%
During the Lok Sabha meeting, Nirmala Sitharaman said that the inflation rate will certainly be brought down to 7%.
Currently, according to the data analysis on inflation possibilities in India by the International Monetary Fund (IMF) and prominent economists such as Raghuram Rajan, the economy is in healthy condition.
During the long speech, FM responded to questions related to GST on staple food items that include flour, rice, and milk.
FM stated that “Our inflation rate has a band. Four is the median point. Minus two or plus two is usually accommodated. We are at seven with some effort or slightly more than seven. We have made sure that the government and the RBI have taken steps to keep inflation below seven, ideally below six. So nobody is denying it.”
A Dart at the Opposition
Sitharaman also criticized the opposition for firing up and politicizing the debate. According to her, the government is in constant communication with the affected people and will do the required work soon.
“But to attribute to us that you are not doing anything for the poor, you’re always for the Ambanis and the Adanis I’m compelled to take the names of is absolutely politicizing a debate which is so necessary for the country,” she added.
The Outlook
According to Nirmala Sitharaman, India’s economic outlook says that the fundamentals are strong. Each and every day India is faring better than the other countries.
While India may be a bright spot amid a global gloomy picture, there are challenges that will not allow the Centre or the Reserve Bank of India to be complacent, she added.
