Price Rise Debate: Sitharaman Says No Question Of India Getting Into Recession, Congress MPs Walkout

Finance Minister Nirmala Sitharaman said India remained the fastest growing economy in assessment of global agencies.

Union Finance Minister Nirmala Sitharaman

Source : PTI

Finance Minister Nirmala Sitharaman, replying to a debate on price rise in Lok Sabha on Monday, said there was no question of India getting into stagflation or recession while asserting that India remained the fastest growing economy in assessment of global agencies. Congress MPs staged a walkout of Lok Sabha as Sitharaman was replying in the House, ANI reported.

"We've never seen a pandemic of this kind...all of us were trying to make sure that people in our constituencies are given extra help. I recognise that everybody -- MPs and state governments -- has played their role. Otherwise, India wouldn't be where it is compared to rest of the world," ANI quoted Sitharaman as saying.

"So, I fully credit the people of India for this...even against adversity we are able to stand up and be recognised as the fastest growing economy," the Finance Minister, who recovered from Covid-19 last week, further said.

READ | TMC MP Bites Into Raw Brinjal In Parliament To Protest LPG Price Hike

She said that gross NPAs of banks were at a six-year low of 5.9 per cent and India's debt to GDP ratio was at 56.21 per cent in FY22, much lower than many nations. While citing GST and macroeconomic data, she said Indian economy was getting more robust. 

Sitharaman said efforts were being made to bring down retail inflation below 7 per cent. India's annual retail inflation in June climbed to 7.01 per cent from 6.26 per cent a year earlier, as per government data.

"Pandemic, second wave, Omicron, Russia-Ukraine (war), even today largest supply components in China are under lockdown...in spite of that, we have held inflation well within 7 per cent or below. That has to be recognised," Sitharaman said.

Congress leader Manish Tewari said the Finance Minister's reply was disappointing. "Attitude of government is there is no inflation in country, people are not suffering. Everything is hunky dory. If that's your response to concerns of opposition articulating voice of 140 crore people of country, why listen," ANI quoted Tewari as saying.

Since the beginning of Parliament's monsoon session on July 18, the Opposition has been raising the issue of rising prices and GST rate hike on essential items, leading to near washout of proceedings. Last week, 23 Opposition MPs were suspended from the Upper House due to "unruly behaviour". Four Congress MPs were suspended from Lok Sabha as well. They were reinstated on Monday.

What Opposition Leaders Said On Price Rise

Initiating a debate on the issue of the price rise, Congress's Manish Tewari said the government's decisions had hit hard 25 crore households in the country and widened the divide between the rich and the poor. He alleged that savings, investment, production, consumption and employment, the five pillars of the economy, had been blown away due to the wrong policies of the Centre.

Slamming the government over the GST hike, Tewari said, "You have increased the GST on flour, curd, paneer, pencil and sharpener. You did not spare even children." The Congress leader said he was "hurt" when 18 per cent GST was imposed on "crematoriums".

Trinamool Congress member Kakoli Ghosh Dastidar said the frequent rise in prices of LPG had made it difficult for poor people to cook food. "Does the government want people to eat vegetables raw?" Dastidar said as she raised a brinjal she had brought with her and took a bite from it.

Sangeeta Azad of BSP said prices of fruits and vegetables had gone up, adding to the hardship of the common man. She claimed that the income of farmers had halved, while the prices of items of common consumption had gone up several times.

(With inputs from PTI)