Home / News / India to sustain high growth rate, inflation to fall next year: Nirmala Sitharaman

Union Finance Minister Nirmala Sitharaman said Wednesday that India will sustain its high growth rate and will have lower inflation next year. Nirmala Sitharaman also said she sees signs of a pick-up in private investments too. The Union minister said that India will sustain its growth rate through more government capital spending. The finance minister said capital expenditure is a key way to drive growth.

"We would continue to push capital expenditure, and that I’m saying even as I’m preparing for the next budget," Nirmala Sitharaman said, adding, “We are well on the course on meeting this year’s target. The states have shown extraordinary absorption capacity for taking the monies and spending on capital assets."

"I look forward to a very good ... growing Indian economy in this year and the next," Nirmala Sitharaman said. On inflation, the Union minister added, “External factors were very strong in the inflation-targeting exercise." She said they were beyond the control of the government and the Reserve Bank of India. “We expect currency volatility to settle on its own."

The finance minister’s comments come as authorities prepare the annual budget for February. That will be the final full-year budget before India goes for general elections in the summer of 2024.

When asked whether India will join the price cap on Russian oil, Nirmala Sitharaman said that the country needs to take care of its own interest on oil. Nirmala Sitharaman said man countries in the West are importing oil rom Russia due to the price advantage and while dealing with Russia, “India will protect its national interest." She also said that higher imports from Russia is helping boost confidence in Indians.

On the free food programme, Nirmala Sitharaman said, “…have not yet made up my mind on a decision in free food programme." She added that the Modi government has never shied away from reforms.

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