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India Not Entering Into Recession Or Stagflation, Says Sitharaman

Nirmala Sitharaman, the finance minister, brushed off concerns that India would enter recession or stagflation

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Nirmala Sitharaman, the finance minister, brushed off concerns that India would enter recession or stagflation. During the Lok Sabha discussion on price rises, the minister said that the Indian economy continues to be "perfect". 

She said that despite the constant reviews, reassesses, and re-estimates of the entire world's growth, we remain the strongest. Stagflation or recession are not likely to occur in India. 

Geopolitical tensions and domestic financial issues like state discoms  not paying their power generation companies' dues.

The Indian economy continues to grow despite all these challenges, she said. 

The opposition's comparisons with Sri Lanka and Pakistan are false, Sitharaman said, emphasising that the country has "sufficient forex reserves". Even in these challenging economic times, the finance minister compared India with major economies during her more than hour-long response.

A number of countries have triple-digit debt-to-GDP ratios, including Japan, the US, France, Canada, Greece, Italy, Portugal and Spain.

It is in a much better position than its competitors (in terms of) general government debt, which includes both central and state debt, she said, quoting the International Monetary Fund (IMF) data.

According to her, banks play an equally important role in understanding the economy, in light of the fact that 4,000 commercial banks in China are on the verge of failure, on the other hand, India's gross non-performing assets stood at 5.9 per cent in FY22.

According to the minister, the Centre aims to keep retail inflation below 7 per cent.

Her remarks came after former RBI governor Raghuram Rajan described the RBI's recent efforts to reduce inflation. 

She explained that the government cut import duties on palm oil and sunflower oil in June to ease price rises.

 


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