New Delhi: Finance Minister Nirmala Sitharaman highlighted that the government's primary focus is on curbing inflation to ensure sustained economic growth.
Speaking at the B20 Summit India, hosted by the Confederation of Indian Industry (CII), Sitharaman underscored the significance of taming inflation as a crucial factor in the country's economic strategy.
She addressed the pressing issue of inflation in the context of the upcoming release of GDP numbers for the first quarter of the year. She expressed optimism about the forthcoming data, stating, "The GDP numbers for the first quarter, to be released this month, should be good."
Acknowledging the impact of elevated interest rates on economic recovery, the Finance Minister emphasised the importance of addressing inflation to facilitate growth. She articulated her commitment by stating, "My priority is to tame inflation."
The recent surge in retail inflation, driven by escalating prices of vegetables and tomatoes, has garnered attention. In July, retail inflation reached a 15-month high of 7.44%.
While focusing on growth, Sitharaman lauded India's efforts to accelerate economic reforms, asserting that these endeavours have contributed to an enhanced pace of reforms. In anticipation of the upcoming GDP figures for the first quarter, she expressed confidence in the positive outcome: "India has been able to accelerate the pace of economic reforms and the first quarter GDP numbers should be good."
Scheduled for release on August 31, the GDP numbers for the initial quarter will be presented by the National Statistical Office.
Sitharaman also shed light on the emergence of "green shoots" in private capital expenditure, attributed to the government's push for capital expenditure outlined in the budget. This strategic emphasis aims to invigorate economic growth.
In addition to inflation and growth, Sitharaman underscored the significance of climate financing and ongoing reforms intended to attract foreign investments. These initiatives are viewed as pivotal components in fostering economic development.