Addressing the post-budget industry interaction with FICCI, Finance Minister, Nirmala Sitharaman assured that India’s recovery will rank it amongst the fastest growing economies.
Finance Minister Sitharaman assured India that it is ready to deal with any situation that may arise from global developments such as the US Federal Reserve’s decision not to ease monetary easing and will not allow the economy to suffer.
He encouraged corporations to capitalize on the economic recovery and increase their investments.
“It is now that Team India has to rise. The time is right for the economy to recover. This reform will place India among the largest economies with the fastest growth rate. This will continue in the next financial year,” the minister said.
He said that the world order has changed after the pandemic and industry leaders should ensure that India does not miss this opportunity.
She recalled that India missed an opportunity in the aftermath of the global financial crisis and said the taper tantrum had not been fully addressed. So India missed out on a big opportunity.
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“Now, the RBI is working together and closely watching the global financial system… We have also learned lessons from the previous crisis that the Indian government faced in 2012-13 and 2013-14.
She said she was “very attentive to what is happening with respect to global strategic developments, including the Fed’s decision and global inflationary pressures. I can assure you here that we will not let the Indian economy suffer because We haven’t prepared.”
He expressed confidence that India will continue to grow and become a major economic power before 2047.
To control inflation, the US Federal Reserve in March decided to halt bond purchases and raise interest rates. India and other emerging economies have benefited from increased liquidity, which has attracted large foreign fund inflows. They will be at risk of massive fund outflows when the US Fed reduces its asset purchases.
Sitharaman presented this year’s budget in Parliament on February 1. He added that asset monetization, which was included in last year’s budget, will continue this year as well. It is going on, and he did not mention it in his budget speech.
Sitharaman believes that this year’s budget will allow states to do more capex. “States usually have projects in the pipeline, so the state’s ability to undertake capex will increase. This is overseen by a committee made up of secretaries.
According to CNBC-TV18, he talked about “budget announcements in the states”.
The Finance Minister also spoke about India’s disinvestment goals. He said that they are working for them, but some precautions should be taken. Just as Nilachal has found a buyer for its IPO, LIC’s IPO is also going to be released soon.
Although she believes that the goal is achievable, she would not like to force the bureaucracy to complete the task.