Indian economy on a strong wicket but hardening of interest rates a cause for concern: BJP’s economic affairs spokesperson

<p>
<strong>At a time when the Indian economy is showing signs of recovery, premature hardening of interest rates on account of inflationary pressure has come as a risk. With the increase in global crude prices, US inflation is at a 30 year-high at 6.2 per cent, BJP’s spokesperson Gopal Krishna Agarwal said at a press briefing.</strong></p>
<p>
“We did not resort to uncontrolled fiscal deficit financing. Our government followed prudent economic policy in spite of intense pressure,” Agarwal said, adding that with the Covid 19 situation coming in control, the government’s focus is now back on the economy with a thrust on maintaining the inflation levels while creating demand.</p>
<p>
<strong>Also read: <a href="https://www.indianarrative.com/economy-news/pm-modi-ref-flags-danger-of-cryptocurrency-at-sydney-dialogue-129021.html">PM Modi red flags danger of cryptocurrency at Sydney Dialogue</a></strong></p>
<p>
“Now that crude prices have increased post pandemic and there is fiscal elbow space, we have reduced excise duty on petrol and diesel significantly,” he said.</p>
<p>
Agarwal also said that privatization of the ailing national carrier Air India is one of the biggest achievements of the Narendra Modi government. Formalities and the finer points of the deal are expected to be completed by the end of this calendar year.</p>
<p>
A few more public sector firms are also in the pipeline for disinvestment within this financial year.</p>
<p>
The Reserve Bank of India has pegged India’s economic growth rate at 9.5 per cent for the current financial year.</p>