New Delhi:
Treasury Secretary Nirmala Sitharaman said on Sunday that the government is ready to face any situation arising from global developments, especially the US Federal Reserve’s decision to roll back monetary easing, and affirms that the economy must not being influenced.
The US Federal Reserve has decided to end its bond-buying program in March and then raise interest rates to keep high inflation under control. Emerging economies such as India have benefited from increased liquidity and have attracted massive inflows of foreign funds.
However, they will face the threat of massive fund outflows as the US Fed will phase out asset purchases.
Working with the trade association FICCI, the finance minister urged the company to boost economic growth by increasing investment.
“Now is the time for us as Team India to rise. We are at such a crossroads where the revival of the economy is very evident… this recovery will therefore place India as the fastest growing economy among the larger economies and that would continue even in the next fiscal’, the minister said.
After the pandemic, the world order has changed and industry leadership must ensure that India does not miss the bus this time, she said.
Recalling that India missed an opportunity after the global financial crisis, she said that the taper tantrum was not absolutely handled well and as a result, missed a great opportunity that was available at the time.
“As the RBI and the government are working together and watching very closely what is going on in the global financial ecosystem… we have also learned the lessons of the latest crisis faced by the government of India in 2012-13 and 2013-14 We’re keeping a pretty close eye on what’s happening with regard to global strategic developments, with regard to the Fed’s decision and also with regard to global inflationary pressures, we’re keeping a close eye on it, and I can recommend the leaders here assure that we will not let the Indian economy suffer from lack of preparations,” Sitharaman told business executives.