Govt ready to deal with upcoming global developments: FM

India is prepared to deal with situations arising out of global developments including the US Federal Reserve’s decision to roll back monetary easing and will not allow the economy to suffer.

February 7, 2022

FM urges corporates to take advantage of the recovery in the economy and raise their high level investments.

FM believes that India will leap forward and reach greater heights by 2047.

To control high inflation, the US Federal Reserve has decided to end its bond purchasing programme in March and increase interest rates.

India has seen beneficiaries of increased liquidity and have attracted huge foreign fund inflows.

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The Finance Minister, Shri Nirmala Sitharaman on Sunday said that India is prepared to deal with situations arising out of global developments which also includes the US Federal Reserve’s decision to roll back monetary easing, and will not allow the economy to suffer. During a post-budget interaction with Ficci, she also urged corporates to take advantage of the recovery in the economy and raise their high level investments. 

After the pandemic, along with the world order, our country has changed and the industry leadership should ensure that India shouldn’t miss the bus this time, she said. India had missed an opportunity after the global financial crisis, she added saying that the country missed a big opportunity due to the taper tantrum not being addressed properly. 

She was confident that going forward, India will leap forward and reach greater heights, and said“before 2047 India would be one of the developed, absolutely enriched countries.”

To control high inflation, the US Federal Reserve has decided to end its bond purchasing programme in March and increase interest rates. Emerging economies like India have been beneficiaries of increased liquidity and have attracted huge foreign fund inflows. However, they will face the threat of huge fund outflows as the US Fed will taper off buying of assets.