18 Oct 2021
Indian Finance Minister says India in no Hurry to Unwind Pandemic Stimulus
The Index Today
India’s finance minister recently stated that the country is in no hurry to cut down its pandemic-era stimulus. Nirmala Sitharaman said in an interview, “The will continue. The emphasis on building health infrastructure will continue and so will government spending on capital expenditure and infrastructure.”
India’s present annual budget due on February 1ST will reflect policies of bringing the country out of the pandemic. The Reserve Bank of India and the International Monetary Fund have forecast GDP growth to be around 9.5% for the year up till March 2022. The new figure is reportedly higher than Bloomberg’s forecast which stands at 7.3%.
However, the country faces numerous challenges in the road to complete recovery. Higher commodity prices, inflation and other factors could risk being a hurdle in the proposed government spending plan. Nirmala further said, “The challenge I will face, and the teams are also watching in the ministry, is the way to fuel prices are leading to a big crest. This uncertainty is a big element for me.”