Union Finance Minister Nirmala Sitharaman on Tuesday predicted that India's growth rate will be around 7% this fiscal year.
New Delhi: Union Finance Minister Nirmala Sitharaman on Tuesday predicted that India’s growth rate will be around 7% this fiscal year. While acknowledging that growth predictions are being revised downward globally, she expressed confidence in India’s relative and absolute growth performance over the course of the next ten years.
Sitharaman was in Washington, DC, to attend the annual meetings of the World Bank and the International Monetary Fund. She also participated in a fireside discussion at the Brookings Institute with Indian-American economist Eshwar Prasad.
She, however, said that despite her optimism for India’s economic development, its economy is still susceptible to the effects of swirling international currents.
“After the COVID pandemic shock, then the emergence of conflict in Europe with its impact on different sectors such as energy, fertilizer, and food prices, synchronised global monetary policy is tightening in its wake. So, naturally, several countries have revised their growth projections and kept them lower, including India. “The three shocking incidents have hampered the growth rate, and inflation has touched a double-edged sword,” Sitharaman said.
According to the Finance Minister, India’s next annual budget must be carefully planned in order to maintain the country’s growth momentum. Sitharaman is set to present the next annual budget in Parliament in February, and its preparation is expected to begin in December.
She said it is too early to get into the details of the next budget, but growth will be given the top priority on the list. She added that the rise of inflation is a big concern and will also have to be addressed. “But then how would you manage growth?”That would be the natural question,” Sitharaman said.