AMN / WEB DESK
Union Finance Minister Nirmala Sitharaman has said that many of the developed economies are on verge of facing recession but India has zero probability of going into recession.
Ms Sitharaman said that despite that we cannot sit with complacency because as India has set a goal of becoming a developed and advanced economy by 2047. The Finance Minister said this yesterday at a function in Bengaluru
She said, at present India is the fifth largest economy in the world and if it has to reach the third position and so on then it is not possible if we sit on this comfort factor that there is no recession. She said, to boost infrastructure, the Government of India has increased the spending from 4 lakh crore rupees in 2019 to 10 lakh crore rupees now.
Sitharaman said that inflation in India is slightly above the “tolerance limit” and the government is taking steps to control it. “Because we took a very calibrated approach, today we have an inflation which is slightly above the tolerance limit, but which is constantly being worked at so it can be brought down,” she said at an event in Karnataka.
The minister’s comments come at a time when, despite a moderation in inflation in recent months, the recent OPEC-plus decision to cut production and prediction of a subdued monsoon have raised fresh concerns over prices, besides the sticky milk inflation. However, the industry is keen on a message from the Reserve Bank of India that the interest rate cycle has peaked, as a section of it is part of a new capex cycle and others seek a consumption revival.