India is comparatively higher positioned to climate the international rise in meals costs, the nation’s chief financial advisor V. Anantha Nageswaran advised CNBC’S “Avenue Indicators Asia” on Wednesday.
“It’s a tough state of affairs … for a lot of nations, however India is comparatively higher positioned due to the truth that there’s ample availability of meals grain, domestically produced,” he mentioned, including the federal government has additionally offered subsidies for meals and cooking fuel to ease the the burden.
Russia’s ongoing struggle in Ukraine has disrupted the worldwide manufacturing and provide of meals and power as a result of each nations are main producers of those commodities. The struggle has led to a surge in costs internationally.
Nageswaran mentioned the federal government has taken “a number of actions” to scale back the burden on the widespread man.
“Not solely have been excise duties on petrol and diesel lower in Could, we have been following up on the speed cuts already made,” he mentioned, including that export duties on iron and metal merchandise have been raised and import duties on crude palm oil lowered.
He mentioned a subsidy below which free meals grain is being equipped to just about 800 million Indians has been prolonged till September.
India’s chief financial advisor additionally mentioned the financial system stays robust regardless of a weak last quarter within the earlier fiscal yr.
“The momentum is kind of moderately robust within the new monetary yr that started in April. We noticed robust manufacturing and providers numbers,” he mentioned, including that the federal government posted a file assortment of products and providers tax income in April.
He mentioned slower fiscal fourth quarter progress was primarily because of the pandemic shutdowns in elements of the nation in January and February.
“The availability chain disruptions held again manufacturing and international commodity costs went up in March,” he mentioned.
Nonetheless, he mentioned the development since then is encouraging.
“The underlying momentum of the financial system stays good. Air journey is selecting up on [rising] enterprise journey…So by and huge, [even] with so many international headwinds, the financial system stays moderately robust and poised to ship average to excessive progress,” Nageswaran mentioned.