No Fear Of Stagflation As India Is Fastest Growing Economy With Low Inflation Level, Says Sitharaman

Speaking in the Lok Sabha, Finance Minister Nirmala Sitharaman said the government was working to bring down inflation.

Finance Minister also said the Indian rupee was strengthening against other currencies.

Source : Getty

Union Finance Minister Nirmala Sitharaman on Wednesday dismissed fears of stagflation in the country, saying India was the fastest growing economy with low inflation levels. Speaking in the Lok Sabha during the ongoing winter session of Parliament, Sitharaman said the government was working to bring down inflation by constantly watching the price situation of essential commodities.

"The government will further bring down inflation and is constantly watching price situation of essential commodities. We will bring down further for the sake of common people," the Finance Minister further said while replying to a discussion on the first batch of Supplementary Demands for Grants 2022-23 in the Lok Sabha.

Retail inflation was down to an 11-month low of 5.8 per cent in November from 6.77 per cent in the previous month. It dipped below the RBI's upper tolerance level of 6 per cent.

She also said the Indian rupee was strengthening against other currencies.

On fiscal deficit, Sitharaman said the government would be able to meet the fiscal deficit target of 6.4 per cent of the GDP for the current financial year. 

"The government is committed to the path of fiscal consolidation," she said.

Sitharaman said non-performing assets (NPAs) had come down drastically to 7.28 per cent at the end of March 2022 due to various measures taken by the Modi government.

On the rupee, she said that the domestic unit was appreciating against all other currencies, and the fall against the greenback was lower as compared to other currencies.

She quoted the World Bank saying India's forex reserves was one of the highest in the world and this provides a cushion against global spillover.

The Lok Sabha later passed Supplementary Demands for Grants, authorising the government to spend additional Rs 3.25 lakh crore in FY23.