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Finance Minister Nirmala Sitharaman on Wednesday said from 2020 till today, India seems to come to a situation, where challenges from Ukraine crisis continue and the newer challenges are also building up, but the country seems like an island of a certain level of calm.
“We still do have our challenges but not as every other country would suspect that India would be threatened,” the Finance Minister said during Global Investors Meet ‘Invest Karnataka 2022’ in Bengaluru on Wednesday.
While stressing the impact of the Ukraine war, she said, “Every country in the world feels the headwinds. When you want to diversify the value chains or you want to ensure that there is more than one source for the raw material or intermediary products that you want to produce. If you would have to find consistency in the value chain, you also need to make an investment in some other place so that there is no huge disruption.”
However, she said, “The situation did not have its complete solution. You have the global situation from a war, especially from major countries which are a huge source of raw materials, whether it is foodgrain-related, fertiliser-related and fuel-related, which draw insecurity to the world in terms of fuel and food.”
As a result, the finance minister said countries were readjusting themselves to source these materials from different parts of the world.
“That has bearing on industries, economy and its growth and global trade. As a result of these disruptions, you find these large economies, which are sources of essential markets, are all going through recession doubts; that suspense or shock that they would be getting into this recession.”
However, she said, “Because of the careful planning, targeted facilitation, fiscal prudence and essentially understanding India’s economy of what strength it has, Prime Minister Narendra Modi led from the front and made sure the Indian economy will not be severely threatened by the developments from outside.”
She said that he ensured handholding happens, targeted supports were extended to industry, particularly the SME and made sure the Indian economy would be carefully navigated through the challenge that we faced.
“I have been also hearing both during the Washington visit when IMF (International Monetary Fund) and World Bank meeting happened and also through various visitors which I have been receiving in New Delhi that India seems to be an oasis of stability and calm,” she said.
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