Government’s focus is on growth as inflation has decreased to a manageable level: FM Nirmala Sitharaman

Inflation has decreased to a manageable level, according to Finance Minister Nirmala Sitharaman, and the creation of jobs and equitable income distribution continue to be top priorities.

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Since inflation has decreased to a sustainable level, according to Finance Minister Nirmala Sitharaman, the government will continue to focus on creating jobs and distributing wealth fairly. At the India Ideas Summit, which was hosted by the US-India Business Council, she was giving the keynote lecture (USIBC). She went on to say that the nation’s economic expansion continues to be a top focus.

The union minister said, “Some of course are red-lettered (priorities), some may not be. Red-lettered ones would of course be jobs, equitable wealth distribution and making sure India is moving on the path of growth. In that sense inflation is not red-lettered. I hope it doesn’t surprise many of you. We have shown that in the past couple of months that we were able to bring it to a manageable level.”

Government data show that while food costs were moderate in July, retail inflation decreased to 6.71%. But for the eighth month running, this percentage remains over the Reserve Bank of India’s comfort zone of 6%.

Retail inflation measured using the Consumer Price Index (CPI) was 7.01% in June and 5.59% in July 2021. From April through June of current fiscal year, it exceeded 7%.

With regard to changes in interest rates at the US and EU central banks, Sitharaman maintained confidence in the RBI. She said that the Reserve Bank will control the volatility brought on by the US Federal Reserve and the European Central Bank’s aggressive rate hike policies.

Speaking about fiscal management during the height of the epidemic, she noted that India, with a focused fiscal policy during the COVID-19 period, managed through a trying time without printing money.

She noted that the availability of crude oil and natural gas remains unpredictable, referring to the ongoing Russia-Ukraine conflict that led to the current global energy crisis.

In addition, she pushed for stronger relations between the US and India in many areas, including payment technologies.