STATE TIMES NEWS
New Delhi: Finance Minister Nirmala Sitharaman on Friday said the government’s priority is to tame inflation to ensure sustained economic growth.
Addressing the B20 Summit India, being hosted by the Confederation of Indian Industry (CII), the minister said the GDP numbers for the first quarter, to be released this month, should be good.
Observing that elevated interest rates for considerable time hampers recovery, Sitharaman said, “my priority is to tame inflation.”
Retail inflation soared to a 15-month high of 7.44 per cent in July, mainly on account of spiralling prices of tomatoes and vegetables.
On growth, she said that India has been able to accelerate the pace of economic reforms and the first quarter GDP numbers “should be good.”
The National Statistical Office is scheduled to release the GDP numbers for the first quarter on August 31.
Sitharaman said that “green shoots’ of private capital expenditure can be felt on back of the government’s push for capital expenditure in the budget.
She also spoke about climate financing and reforms being undertaken by the government to attract foreign investments as they are vital for economic growth.
Responding to a question on the impact of slowdown in China, India and the rest of the world, the Finance Minister said she would “rather play the India story” rather than talk about developments in China which is witnessing an economic slowdown.
Acknowledging that developments in China is a matter of concern for all, she said “I would rather play the India story”.
“While I’ll keep a watch on the developments happening in China, I am more focused on India’s moment, on the opportunities that exist in India, the skills, and the work culture where the young are revving to go forward and prove themselves. So, we should speak for India’s strengths and not for the suffering of somebody else,” the minister said.
“I am presenting India for the strength it has now. Particularly with the young population, which is a skilled English speaking population and a population which goes by a transparent system of governance and the system where legal remedies are available through courts,” she said.
In her address, the minister talked about steps taken by the government to promote infrastructure development, startups and address climate issues.
She focused on five key priorities that are required for sustained global economic recovery — emphasis on investment for spurring growth, global focus on investment in public health and education, climate change finance, diversification of supply chains, and taming inflation.