Finance Minister Nirmala Sitharaman on Wednesday assured the Lok Sabha that the government will take measures to further ease inflation, which has dipped below the RBI’s upper tolerance level of 6 per cent.
Retail inflation has moderated to an 11-month low of 5.8 per cent in November from 6.77 per cent in the previous month.
“We will bring down further for the sake of common people,” she said while replying to a discussion on the first batch of Supplementary Demands for Grants 2022-23 in the Lok Sabha.
The government is constantly watching the price situation of essential commodities, she said.
The finance minister made it clear that there is no fear of stagflation as India is one of the fastest-growing economies with low inflation levels.
With regard to fiscal deficit, the finance minister said the government would be able to meet the fiscal deficit target of 6.4 per cent of the GDP for the current financial year.
The government is committed to the path of fiscal consolidation, she added. On non-performing assets (NPAs), Sitharaman said it has come down drastically to 7.28 per cent at the end of March 2022 due to various measures taken by the Modi government.
With regard to the declining value of the rupee against the US dollar, she said, the domestic unit is appreciating against all other currencies, and the fall against the greenback is lower as compared to other currencies.
Quoting the World Bank report, she said India’s forex reserves is one of the highest in the world and this provide a cushion against global spillover.