Nirmala Sitharaman assures relief from inflation next year, says ‘increased private investment in the country’

Nirmala Sitharaman: Finance Minister Nirmala Sitharaman has said that due to a good strategy to deal with the pressures related to the supply of food items, India will be able to face inflation in a better way. Regarding inflation, the Finance Minister said that inflation will come down next year as the central bank officials have made all efforts to control prices in tough global conditions. There are also indications from the RBI that inflation is on a declining trend and will come down to a comfortable range by the beginning or middle of next year, he added.

Addressing the Reuters Nect Conference, the Finance Minister has said that there is an increase in private investment in the country. He said that due to the capital expenditure of the government, India will be able to maintain the high growth rate. The Finance Minister said that I hope that the Indian economy will develop in a very good way this year and in the next year.

However, in October 2022, the retail inflation rate has come down from 7 percent to 6.7 percent. Despite this, after the monetary policy meeting on December 7, 2022, there is a possibility of increasing the interest rates. RBI has already increased the repo rate by 190 basis points.

On India’s role in the race to impose a price cap on Russian oil, the Finance Minister said that the decision will be taken on the basis of what is appropriate in India’s favor to maintain availability of cheap oil. He believed that the ups and downs in inflation due to the import of crude oil could continue further. He said, ‘Crude oil should be available to all at an affordable price and it cannot be used as a weapon. If the movement of goods is obstructed then it can affect us.

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Regarding the expansion of production-linked incentive, the Finance Minister said that the government’s mind is completely open about it. On the regulation of cryptocurrency, he said that the way crypto assets are running, it needs to be regulated. He said that unless all the countries come together, it will not be possible to regulate it.

However, the focus of the government is now on the budget to be presented on February 1, 2023. The Finance Minister has already said that controlling inflation and increasing employment opportunities will be among her biggest priorities in the budget.

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