PremiumFinance Minister Nirmala Sitharaman said that inflation has eased to manageable level, job creation and equitable distribution of wealth remain the priority
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Finance Minister Nirmala Sitharaman today said that job creation and equitable distribution of wealth remain the focus areas of government since inflation has come down to a manageable level. She was delivering a keynote address at the India Ideas Summit organised by The US-India Business Council (USIBC). She further added that the country's economic growth remains a priority.
The union minister said, "Some of course are red-lettered (priorities), some may not be. Red-lettered ones would of course be jobs, equitable wealth distribution and making sure India is moving on the path of growth. In that sense inflation is not red-lettered. I hope it doesn’t surprise many of you. We have shown that in the past couple of months that we were able to bring it to a manageable level."
According to the data released by government, retail inflation softened to 6.71% in July on account of moderation in food prices. But this figure is still above Reserve Bank of India's comfort level of 6 per cent for the seventh consecutive month.
The Consumer Price Index (CPI) based retail inflation was at 7.01% in June and 5.59% in July 2021. It was above 7% from April to June this fiscal.
Sitharaman exuded confidence in RBI with respect to changes in interest rates in central banks of the US and EU. She asserted that the Reserve Bank would manage the volatility emerging from aggressive rate hike stance by the US Fed and the European Central Bank.
Speaking on fiscal management during the peak of pandemic she pointed out that during COVID-19 period, India with a targeted fiscal policy managed through a challenging time without printing money.
Referring to the global energy crisis triggered by the ongoing Russia-Ukraine war, she said, uncertainty over availability of crude, natural gas continues.
She also urged for deepening of ties between India and the US in all respects including on payment technology.
(With inputs from PTI)