India’s finance minister Nirmala Sitharaman during a conversation at Harvard Kennedy School on Tuesday, stated that the country’s economy will expand close to double-digit in the financial year 2022. There are also chances for it to grow by 7.5-8.5% after that for a decade.
The finance minister then explained that her statement is based on the observations based on growth projections of the World Bank, IMF, and rating agencies. The minister also clarified that the ministry of finance had not done any assessment about the growth number.
HOW DO THE FM ANALYSE THE NATION’S ECONOMY
Talking about the possibility of how India’s GDP growth will be increased by a margin of 7.5-8.5% in the coming decade, Nirmala Sitharaman responded that she expects the growth to be sustained for the next decade mainly due to the rate at which expansion in core industries is happening in the country and also due to the rate at which services are growing. And for any reason whatsoever, she does not see the nation’s growth to decline.
According to Sitharaman, who were quizzed about how the nation will sustain the historical rarity that is the growth of 8% and accordingly how from her medium and long term plans that change is going to come from, the response was investors and industries across the globe that are looking for destinations where certain assumptions can be taken up – the rule of law, democracy, and transparent policies have found India as a place suitable to set up businesses.
And with all these investors, the growth witnessed in the economy won’t be reduced but will be rising in the years to come.
She also noted that according to the latest data released, she is confident about India’s growth to be the highest in the world this year and can even continue into the following year, one of the fastest-growing economies.
FINANCE MINISTER ON GLOBAL ECONOMY
Speaking on the global economy, she responded that she doesn’t think it is possible that we could have one picture for the entire globe and predicted that the emerging market economies are likely to recover speedily and have a growth trajectory, which will probably be even the title of engine for growth.
According to her, they are the ones who are going to be pulling forward the global economy.
FINANCE MINISTER ON THE LAKHIMPUR KHETRI DEATHS
The minister was asked about the tragic Lakhimpur Khetri deaths, and she did respond to the questions. When asked about the government’s inaction or whether the government is pretending to sleep on the issue, Nirmala said that the incident is condemnable.
Everyone from the government has said that and insisted that the government is not mishandling the incident.
She took a clever stand by leaving the questions related to the issue by stating that it’s being defensive about India and not of her party and Prime Minister who is being questioned in the incident. She stated that she would not be mocked; I would be defensive about standing up and saying, sorry, let’s talk on facts if it is mocking.
FINANCE MINISTER IN THE UNITED STATES
Nirmala Sitharaman, who is currently in the U.S., is there for a week-long trip. The main agenda of the U.S. trip is to attend the annual meet of the World Bank and IMF as well as the G20 Finance Ministers and Central Bank Governors (FMCBG) meeting.
During this official visit, Ms. Sitharaman is expected to meet U.S. Treasury Secretary Janet Yellen.
