Finance Minister Nirmala Sitharaman said on Sunday the government was ready to deal with any situation arising from global developments, mainly the US Federal Reserve’s decision to reverse monetary easing, saying the economy would not be not affected.
The US Federal Reserve decided to end its bond-buying program in March and raise interest rates thereafter to control high inflation. Emerging economies like India have benefited from increased liquidity and attracted huge inflows of foreign funds.
However, they will face the threat of huge outflows as the US Fed scales back its asset purchases.
Interacting with industry body FICCI, the finance minister urged the company to boost economic growth by stepping up investment.
“Now is the time for us as the Indian team to rise up. We are at a time when the recovery of the economy is very clear…this recovery is therefore going to place India as the economy at fastest growing among major economies and this would continue even into the next fiscal year,” the Minister said.
After the pandemic, the world order has changed and industry leaders should ensure that India does not miss the bus this time around, she said.
Recalling that India missed an opportunity after the global financial crisis, she said that the taper tantrum had not been handled absolutely well and hence India had missed a great opportunity that lay ahead. ‘era.
“Now, with the RBI and the government working together and watching very carefully what is happening in the global financial ecosystem…we have also learned lessons from the latest crisis that the Indian government faced in 2012-13. and 2013-14. We are quite attentive to what is happening in terms of global strategic developments, in terms of the Fed’s decision and also in terms of global inflationary pressures, we are watching very closely, and I can assure the leaders here that we will not allow the Indian economy to suffer for lack of preparation,” Ms. Sitharaman told the business leaders.