Political stability, decisiveness key for Indian economy’s growth: FM

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On India’s inclusion in the JPMorgan bond index, Sitharaman said: “It shows a prospect for $23 billion to come to India. That is the kind of impact that inclusion into the JPMorgan bond index means.”

Nirmala Sitharaman, Indian economy, Indian economy growth, Indian express business, business news, business articles, business news storiesJPMorgan’s India bond inclusion will start on June 28, 2024, and extend over 10 months with 1 per cent increments on its index weighting, as India is expected to reach the maximum weighting of 10 per cent.

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Finance Minister Nirmala Sitharaman Thursday said only political stability, policy consistency and decisiveness will guarantee the upward movement of India’s economy. She also said the inclusion of India’s sovereign bonds in JPMorgan’s emerging market index could bring in $23 billion in foreign capital flows.

“Quite a few things have been said about the Indian economy. We are said to become the third largest. From the 10th position in 2013-14, we have moved over to the fifth-largest economy… India in the next few years will move to become the third-largest economy. And already lots of people say, oh that’s a given. We will at any cost be third largest. You don’t need to take any credit for it. It’s not the current government which is keen to take credit for it, it’s actually the people of India who should feel that they should get credit and feel proud about it… to say it is a fait accompli, therefore, there’s no effort of the people of India, is to undermine the importance of entrepreneurs, farmers, and the struggling and economically weaker sections of India…,” she told students of the Shri Ram College of Commerce (SRCC).

“There is no way in which I will accept if anyone says, oh, it’s guaranteed that we will move from five to three in the next few years and you don’t need a Prime Minister to say I’ll make sure that this country will move to the third rank. I think that is losing perspective of what it takes to move upwards for better prospects of our citizens… amid a globally volatile macroeconomic situation, what is guaranteed, pray? And there was a time when India probably was somewhere in 10th position, but it fell back. So going upwards is not a guarantee, but maybe going downwards, high risk,” she said.

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Emphasising on “political stability, policy consistency and decisiveness” as key requirements for India’s upward movement, she said: “Industry is always concerned and they ask for consistency in policy to ensure growth in economic activities. You need governments that are futuristic, ready for reforms and provide consistency for businesses to grow.”

On India’s inclusion in the JPMorgan bond index, Sitharaman said: “It shows a prospect for $23 billion to come to India. That is the kind of impact that inclusion into the JPMorgan bond index means.”

JPMorgan’s India bond inclusion will start on June 28, 2024, and extend over 10 months with 1 per cent increments on its index weighting, as India is expected to reach the maximum weighting of 10 per cent.

© The Indian Express (P) Ltd

First published on: 06-10-2023 at 04:36 IST


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