Department of Economic Affairs (DEA) secretary Ajay Seth today said the government expects inflation to moderate in the coming months with the recent fiscal and monetary steps. Seth said despite global headwinds, India is poised to become the fastest-growing economy.
On the sidelines of the curtain-raiser press conference on the iconic week celebration programme under Azadi Ka Amrit Mahotsav of the ministry, Seth says: "We do expect inflation should moderate in the coming months. Measures needed from the fiscal side have been taken. While monetary authority, too, has taken the measures."
On asked if the government will take more additional fiscal measures, Seth says that it is an emerging situation and measures will be taken as and when needed. On whether the RBI will have elbow room to avoid further monetary tightening to support growth in view of fiscal measures already taken, Seth says he will not comment on the monetary authority's role.
Seth says that despite the global headwinds, the Indian economy is poised to remain the fastest-growing economy.
"We are proud of India's journey over the last 75 years. We have short-term and long-term challenges. I am confident that we will overcome the current as well as the future challenges in the Amrit Kal. The global turmoil is impacting the economy. Even despite the global headwinds, India is poised to be the fastest-growing economy. This was our position six months back and now," Seth says.
Notably, the headline inflation at 7.79% in April forced the government to take fiscal measures in its fight against the rising prices. The government has taken a slew of measures since then, including a reduction of excise duty on petrol and diesel, subsidy on LPG cylinders, and tariff tweaks on plastics, steel and edible oils.
