Govt shall not allow the Indian economy to suffer for want of preparations: FM Nirmala Sitharaman

Finance Minister Nirmala Sitharaman. Photo/AFP

India is prepared to deal with any situation arising out of global developments, including the US Federal Reserve's decision to roll back monetary easing, and will not allow the economy to suffer, Finance Minister Nirmala Sitharaman asserted on Sunday.

In a post-Budget interaction with industry body FICCI, she urged corporates to take advantage of the recovery in the economy and step up investment.

"It's time now for us as Team India to rise. We are at such a juncture where revival of the economy is very clear...this recovery is therefore going to place India as the fastest growing economy among the larger economies and that would continue even in the next fiscal," the minister said.

Post pandemic, the world order has changed and industry leadership should ensure that India doesn't miss the bus this time, she said.

Recalling that India missed an opportunity post the global financial crisis, she said the taper tantrum was not absolutely well addressed and as a result, India missed out on one big opportunity that was available at the time.

"Now with the RBI and the government working together and very much keenly observing what is going on in the global financial ecosystem...we have also learnt the lessons of the last crisis which the government of India faced in 2012-13 and 2013-14.

"We are fairly watchful of what is happening as regards the global strategic developments, as regards the Fed decision, and as also regards the global inflationary pressures, we are keeping a very close watch, and I can assure the leadership here that we shall not allow the Indian economy to suffer for want of preparations," she said.

She exuded confidence that India would definitely leap forward and reach such sustained growth levels and before 2047 it would stand out as one of those well developed, absolutely endowed countries.

The US Federal Reserve has decided to end its bond purchasing programme in March and increase interest rates thereafter to control high inflation. Emerging economies like India have been beneficiaries of increased liquidity and have attracted huge foreign fund inflows.

However, they will face the threat of huge fund outflows as the US Fed will taper off buying of assets.

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