India's economy to grow despite world is ‘dangerous’: Amidst reports of a global recession and downgrading of growth rates of almost all major economies, Finance Minister Nirmala Sitharaman exuded confidence on India's relative and absolute growth performance in the rest of the decade and forecast the country's growth rate to be around 7 per cent this financial year.
The minister, however, observed that the Indian economy is not exempt from the impact of swirling global currents.
“After the unprecedented shock of the pandemic, came the conflict in Europe with its implications for energy, fertiliser and food prices. Now, synchronised global monetary policy is tightening in its wake. So, naturally, growth projections have been revised lower for many countries, including India. This triple shock has made growth and inflation a double-edged sword,” Sitharaman said.
After the conflict started in February 2022, there was a sharp increase in food and energy prices. India had to ensure that the rising cost of living did not lead to lower consumption through erosion of purchasing power.
Nirmala Sitharaman is on her 6-day visit to the US from October 11-16, the minister would meet US Treasury Secretary Janet Yellen and World Bank President David Malpass separately to discuss the issues of mutual interest.