Opposition flags inflation, job loss; FM Sitharaman says no recession or stagflation

Asserted that the Indian economy showed “very positive signs” and became “stronger”, Union Minister Nirmala Sitharaman said on Monday that “there was no question” the country “entered the recession or stagflation”.

Replying to discussions about price increases at Lok Sabha, Sitharaman attacked the opposition to compare the country’s economic conditions with neighboring countries such as Sri Lanka, and said India was in a far better position as “basic macroeconomics is perfect”.

“If we talk about the Indian economy, then we are the fastest developing regardless of all global challenges and domestic challenges,” he said.

Sitharaman also quoted former Governor of RBI Raghuram Rajan and said that the Reserve Bank of India had carried out “very good work in increasing foreign exchange reserves in India, isolating (IT) from problems faced by neighboring countries, such as Pakistan and Sri Lanka” .

The opposition, however, took government, blamed him for expanding inequality with price increases and failing to provide jobs.

The Congress accused the government of failing in the basis of the economy. TMC said that government policies have left people without money to even buy LPG cylinders. Not satisfied with Sitharaman’s reply, Congress and MPK MPK members left the house.

Previously, responding to Congress leader Adhir Ranjan Chowdhury, who tried to find out whether India headed for stagflation, Sitharaman said, “There are no questions about India who entered the recession or stagflation.”

Observing that their banks and health are as important as seeing the economy, Sitharaman said, “In India, the gross assets that are not performing from commercial banks are scheduled to be in the lowest position of six years at 5.9 percent at FY-22. So, in China 4,000 banks are on the verge of bankruptcy and our NPA improves. “

He said that the ratio of debt to GDP of many countries, including the US, was in three digits while 56.29 percent in India. “India is in a far better position than her colleagues … Indian economy shows very positive signs,” said Sitharaman.

First of all, as Indians we must appreciate that our people have gone through this pandemic … but apart from that, because of the various steps taken by the government and also by the Reserve Bank of India, we are far better than most countries, ” he says.

“I realize that all members of the Parliament and the state government – all have played their role, if not, India will now not be in place compared to the whole world. So, I fully praise Indians … We are recognized as the fastest growth economy and this is not my assessment, “he said.

At the beginning of his long reply that lasted for an hour 40 minutes, with frequent interference by the opposition, Sitharaman said, “I found it was more discussion about the political angle of price increase than concerns driven by data about prices. Because of that, I tried to make my reply a little political. “

Comparing the inflation rate during the NDA government with that during the UPA government led by the congress, Sitharaman said, “We have held inflation well in 7 or below. Retail inflation is more than 9 percent for 22 months during UPA … inflation in two digits nine times. “In 2012-13, the consumer price index was 10.05 percent while it was 6 percent in 2020-21, he said.

Sitharaman also attacked the congress because it issued oil bonds during his reign. In principle, the decision to issue oil ties is wrong, he said, adding that Freebies culture must end.

Observing that the duty of palm oil has been reduced from 35.75 percent to 8.5 percent and now to 5.5 percent, said Sitharaman, the government has drastically reduced the task so that the edible oil price can go down.

Hit the opposition to compare India with neighbors Bangladesh and Sri Lanka, Sitharaman said, “India is better than Sri Lanka and Bangladesh … Today, Bangladesh demands a loan of $ 4.5 billion from the IMF. Sri Lanka demanded $ 3.5 billion. Pakistan demands $ 7 billion. India’s condition is not like that … Indian macroeconomic fundamentals are perfect … Compare with the US. What is Bangladesh and Sri Lanka. “

Responding to the demand for opposition for GST rollback on food items such as milk, dadih and rice, Sitharaman said, “This problem was discussed in the GST council in detail. All Minister of State present. No voting and decisions were taken by consensus. “

The Minister of Finance clarifies that GST is only levied on items that have been packaged and labeled, and not on loose goods.

He said the decision to force GST on these items was taken at three levels, the Fitmen Committee, the ministerial group and the GST council, and showed that representatives of the countries controlled by the opposition participated in the process.

None of them stated differences of opinion, he said, added that GST was only levied on branded food items to curb leaks in income.

He also highlighted how there were VAT on food products such as pulses in various countries including Punjab, Tamil Nadu, Telangana, Andhra Pradesh and Jammu and Kashmir.

“For those who talk about GST, I want to tell them with their hands folded that the GST council is a constitutional agency in which all states and centers sit together and where the decision is not taken by (Prime Minister Narendra) Modiji. Decisions were taken by the Minister of Finance of all states. They must tell the truth in their states. But they don’t do it, “said Sitharaman.

The Minister of Finance of the Uni also clarified that there was no GST about funeral and crematorium services. In the GST compensation problem, he said that only one month compensation (for June 2022) was delayed for the state.

In his speech, the Chowdhury Congress leader accused the government of helping the corporation. “The Modi government is only for two people,” he said, added that “two or three companies” were involved in “booty” while the poor “were forced to live in darkness”.

In response, Sitharaman showed that the congress government in Rajasthan had allocated 2,397 hectares of land to the Adani company. He said that the Rajasthan government had signed an MoU with an Adani company only a day after the leader of Congress Rahul Gandhi accused the government of supporting Adani and Ambani.