Rising inflation remains a concern across the globe because of headwinds such as supply chain disruptions and uncertain geopoltical conditions across Europe. India may be doing better than most countries, since it has been identified as a bright spot by the IMF, but inflation continues to affect household bills across the country. Facing questions about rising inflation despite a drop in wholesale inflation for November, Finance Minister Nirmala Sitharaman told parliament that the government is monitoring the developments.
India better than it was in 2013
She also added that the concerns are unrelated because of the prices of fuel and fertilizer, that determine industrial and agricultural production. Saying that India’s macroeconomic fundamentals were better compared to 2013, when India was considered a fragile economy, Sitharaman also said that wholesale inflation fell to a 21-month low in November. The Finance Minister also gave credit to the government’s handling of covid, for helping the country steer clear from recession.
Higher tax collection and production-friendly policies
The Finance Minister also highlighted how tax collections will help the government cope with extra expenditure, which arises from grants. She also reiterated that an additional expense of Rs 4.36 lakh crore won’t have any effect on the government’s borrowing pattern.
In addition to policies on inflation and measures to ensure growth, Sitharaman also mentioned how private investment capex had been buoyed by government support via schemes such as production linked incentives.
