NEW DELHI: Chief financial adviser V Anantha Nageswaran said on Tuesday that India is more healthy placed to tackle the worldwide financial challenges than several other international locations. He also asserted that the Reserve Monetary institution of India’s (RBI’s) pass to raise passion charges sharply may perchance likely well well simply not be anti-reveal.
“Passion rate amplify may perchance likely well well simply not necessarily be an anti-reveal pass, especially when accurate passion charges are still on the lower facet,” the government’s chief economist told newshounds after the GDP numbers had been launched. He said government spending, and a revival of non-public capital expenditure within the 2d half of the contemporary financial year, are anticipated to motivate the Indian financial system grow by 7-8%.
Pointing to inflation numbers across the realm, he said costs had been being driven by global factors and the realm in India changed into larger than several evolved international locations. He also said that a collection of measures taken by the government all over the previous couple of weeks will motivate aloof inflationary pressures.
Inflation has surged to the most realistic stage since Narendra Modi took over as PM eight years within the past, amid soaring oil and commodity costs and a world disruption in supply chains as a result of the battle in Ukraine. Nageswaran, who took over at the tip of January, said the financial system has proved to be resilient with all most important actions, barring about a contact-primarily based services and products, surpassing their preCovid stages at some point of the last financial year (2021-22).
He said the distress of stagflation — when an financial system faces moderation in GDP reveal along with excessive inflation — changed into low in India. “As in contrast with the ride of many developed and creating international locations, India is a shrimp larger placed and, more importantly, both the central bank and the government are seized of the realm and are addressing them. I would at this stage teach that stagflationary risks for India are quite low in contrast to the the relaxation of the realm. ”