FM response on price hike: “Political criticism, economy shows positive signs”

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We are much better than most countries thanks to the measures taken by our government and the RBI, said the FM

Defending the government on the issue of price hikes, the BJP on Tuesday called on opposition members to overcome ‘modi-phobia’ and appreciate Prime Minister Narendra Modi for his handling of the situation at the height of the crisis. the COVID-19 pandemic and its provision of free food to 80 million people in the country.

Speaking in the House, Finance Minister Nirmala Sitharaman said: “I find this to be more of a discussion about the policy angle of the price hike than a data-driven discussion. My answer will also be a bit political. You will have to listen to a political response if you have made a political argument.

Excerpts from FM’s speech:

“Let’s look at India Today compared to what is happening in the rest of the world. Why should we compare with the rest of the world.

Whether in 2008 or before, we have never seen a calamity like this (Covid). I recognize that everyone has played their part in getting out of the pandemic. We are the fastest growing economy in the world, even the World Bank and other agencies have said so, but that is not my assessment.

Every time these agencies reassessed global growth, they downgraded countries, but even though they downgraded India, we remained at the highest and fastest growing economy.

We are much better than most countries thanks to the measures taken by our government and the RBI

Globally, when the situation is such and every agency after agency in its assessment has ranked India number one, this House will have to recognize that

It’s not that the country has no problems, we are trying to solve these problems.

On the comments of Adhir Ranjan Chowdhury

Adhir Ranjan Chowdhury asked if we are heading towards stagflation. I want to assure you that we are not.

A Bloomberg survey indicated that there was no likelihood of India entering recession, even though several major economies are at substantial risk of entering recession.

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4,000 banks in China are on the verge of bankruptcy. In India, scheduled commercial bank NPAs hit a historic low.

The public debt to GDP ratio of many countries is in triple digits while we have controlled our debt at 56% of GDP for 2021-2022. So even comparing the general debt, we are in a much better position compared to other countries.

This morning we announced the GST collection for July. We have reached the second highest level ever recorded in GST collection – 1.49 lakh crore. In April, it was 1.67 lakh crore, the highest. For 5 consecutive months, GST collection has been over 1.4 lakh crore.

The economy is becoming more robust and showing very positive signs.

On Supriya Sule’s comments

Supriya Sule said we can’t go on past and talk about our 8 years. When questions are not asked about facts, facts will have to be recalled. I would like to go back there. From 2008 to 2013, we were a fragile country. Today, despite the pandemic, the blockages in the China-Russia-Ukraine war, we have kept inflation at less than 7. This must be recognized.

In the UPA, inflation went into double digits 9 times. Remember that when you tell us to keep inflation below 7. We will keep it below 7, Modiji keeps an eye on that.

Adhir Ranjan Chowdhury named an economist who criticized the state of Indian economy. Their problem is that they will always name the same economist who criticizes us but they will not mention all the economists who praise us. Raghuram Rajan also praised RBI and our economy vis-à-vis the situation in Sri Lanka.

Raghuram Rajan also said that India has sufficient foreign exchange reserves, RBI is doing a good job, we don’t have problems like Sri Lanka. He was very clear in his comments.

Adhir Ranjan worries about inflation. Raghuram Rajan said inflation was everywhere. Inflation is coming down across the world and it will come down in India too. So that’s what Rajan said although he didn’t mention our government’s efforts to bring prices down.

We need to drastically reduce import duties on edible oils to bring down oil prices.

On the Adani/Ambani routes

Those who accuse us of only working for Adani and Ambani, I would like to point out:

In Rajasthan, CM Ashok Gehlot made a cabinet decision to donate over 2900 hectares of land to Adani for a solar energy project. In December 2021, the Adani Renewable Energy Park Agreement was signed between Adani and the Government of Rajasthan just a day after the former Congress President (Rahul Gandhi) was in Jaipur to give a lecture on Adani and our government.

The same thing happened in Tamil Nadu where 59 MoUs were signed including agreements between Adani and the DMK-Congress alliance government.

So the members of Congress also sign these agreements with Adanis and give them projects, but they blame us for helping the Adanis and the Ambanis.


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