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Union Finance Minister Nirmala Sitharaman on Wednesday said she saw signs of a pick-up in private investments. Speaking at the Reuters NEXT conference, the finance minister said that India will sustain its high growth rate through more government capital spending.

"I look forward to a very good ... growing Indian economy in this year and the next," FM Sitharaman said.

Speaking on inflation, the FM said that inflation will fall within a more palatable range next year, as central bank authorities attempt to tame prices amid tough global headwinds. “External factors were very strong in the inflation-targeting exercise," she added.

The country's retail inflation fell below 7% for the first time in three months in October, but that may not be enough for the RBI to consider pausing interest rate increases just yet. 

The central bank, which has raised its benchmark rate by 190 basis point this year, will likely remain hawkish at a monetary policy review next week.

The RBI's Monetary Policy Committee earlier this month penned a letter to the government explaining their failure to contain inflation between 2% and 6% and outlined a road map for returning prices to target. However, FM Sitharaman declined to describe specifics from the letter.

The finance minister's comments come as the government prepares to present its annual budget in February. Data due today is likely to show that the Indian economy expanded at a slower pace last quarter, as price pressures, rising interest rates and sluggish trade tempered demand.

More from Sitharaman:

India stands on the side of its own interest, Sitharaman said when asked about whether India will join the price cap on Russian oil. “India needs to take care of its own interest on oil and needs to have affordable and sustainable oil".

The government remains very open-minded on expanding the scope of production-linked incentives.

Will focus reforms for multilateral banks, climate finance, regulation of crypto assets during India’s G-20 presidency.

“Crypto assets that are coming like mushrooms will have to be regulated and that cannot be regulated effectively unless countries come together".

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