Nirmala Sitharaman said “It is important for us to appreciate as Indians that our people have dealt with the pandemic and its waves.”
Nirmala Sitharaman said “It is important for us to appreciate as Indians that our people have dealt with the pandemic and its waves.”
Union Finance Minister Nirmala Sitharaman, on August 1, 2022, replied to the debate on price rise in the Lok Sabha.
Ms. Sitharaman said “I find it was more a discussion on the political angles of price rise rather than actually data-driven concerns. That is why my answer will also be slightly political… It is not to hurt any member, at the same time, if anyone feels am giving a political speech, that political speech will have to be heard.
“I have no problem with interruptions being made in between, Sir. Let us please be in this House looking at India today, compared to what is happening in the rest of the world. Just two-three highlights will tell you where India is…”
While replying to the price rise in the Lok Sabha, Union Finance Minister said “Whether it was in 2008 or before that, we have never seen a calamity of this kind, and coming out of the pandemic, even as all of us were trying to make sure that people are given that extra help, I fully credit the people of India… even against adversity, we are able to stand up and be recognised as the fastest growing economy. And this is not my assessment but a repeated one made by agencies like World Bank and IMF for the last two years. Each time they have reviewed, and downgraded global growth, India has also been reduced in terms of expected growth, but even after that we remain the fastest growing… If it was at 8.2%, it may now be at 7.4%. But we remain at the highest.”
She said “It is important for us to appreciate as Indians that our people have dealt with the pandemic and its waves, because of various steps taken by the govt and the RBI, we are remaining much better than most other countries.”
Responding to interruptions, Ms. Sitharaman said “It is exactly this that I am trying to address. It is not that the country doesn’t have problems and we are trying to address them, but even as global agencies are saying, this country is suffering from this that country is suffering from those problems, a third country is suffering with something else, and India is like this. I am quite convinced of every input given and I think it is my duty to respond, but even before hearing me, if there’s mockery, I would reply to those who mock rather than those who like to hear.
“When there can be interruptions that are serious, and when there are mocking tones coming from there, I reserve my right to reply to those. Speaker Om Birla pleads afresh to MPs not to pass remarks.”
Ms. Sitharaman said “Sir, the GDP of the U.S. fell 0.9% in the second quarter, following a 1.6% decline in the first quarter, marking the start of an unofficial recession. Are we going into stagflation? some leaders asked. There is no question of India going into recession or stagflation.
“It is not just me. A Bloomberg survey of economists has said there is zero probability of India slipping into recession, even though there are several major economies who are in substantial risky positions of getting into recession”, Union Finance Minister said.
Union Finance Minister said “About 4,000 banks in China are reportedly on the verge of going bankrupt. In India, the gross Non-Performing Assets of scheduled commercial banks has hit a six-year low of 5.9% in 2021-22.
“On government debt, an important criteria to measure the economy. The debt to GDP ratio of many countries are in triple digits – including, Japan, Greece, Italy, Singapore, US, Portugal, France, Sri Lanka and Canada. Whereas the Central government has very consciously controlled its debt and it is at 56.2% in 2021-22, compared to 59% pegged in the revised estimates for that year,” Ms. Sitharaman said.
She said “Even when comparing the general government debt, which includes Centre and States, India is much better placed than its peers. The IMF has said so. Globally whatever the situation is, pandemic, Russia, second wave, and disruptions in supply chain, when globally every country is in a different situation, I have given you some few comparisons of where India is.”
On GST collections, Ms. Sitharaman said “Today, we have announced the GST collections for July. We have garnered the second highest level ever since GST’s introduction, at ₹1.49 lakh crore. This April, it was ₹1.67 lakh crore which was the highest revenues. This is the fifth consecutive month that collections have been above ₹1.4 lakh crore.”
Union Finance Minister said “The Manufacturing PMI, which came out today, is at the highest number in eight months, with output and new orders improving. This is the thirteenth month in a row of growth. India’s eight core sectors grew 12.7% in June, year-on-year. So strictly speaking, the Indian economy is showing very positive signs in every one of these aspects.”
Ms. Sitharaman said “When questions are constantly based not on facts, facts will have to be reminded. Even now, Leader of Opposition said inflation exists before COVID also. Yes, inflation exists. Let’s not forget – for a small taper tantrum by the US Fed in 2008 led to problems till 2013.
“What are we today in? Pandemic, second wave, Omicron, Russia-Ukraine, supply chain, even today, the largest component suppliers in China are still under lockdown in several areas. Inspite of that, we have held inflation well within 7% or even below. And that has got to be recognised,” she said
Union Finance Minister further stated that “So, just gently, some things will have to be remembered. We should remember the past repeatedly, because it was not a pandemic situation when the UPA handled the taper tantrum. That affected India so much that it became a fragile five economy in 2013.”
