India’s pragmatic response to pandemic ensured moderate inflation: Vaishnaw

Davos: Union Minister Ashwini Vaishnaw on Wednesday said that India took a very pragmatic approach in dealing with the humanitarian and economic crises triggered by the Covid-19 pandemic and that has ensured moderate inflation and high growth in the country. Speaking at the World Economic Forum Annual Meeting 2023, the minister said that India's economy has been resilient and the policy framework has helped in maintaining sustained growth with a very moderate inflation.

'India took a very pragmatic approach, while understanding that capital is very scarce'

"As the pandemic hit the world and triggered an economic as well as humanitarian crises, many countries began unleashing their purses with big stimulus packages but that led to a gold-plated rush resulting in huge inflationary pressures," said Vaishnaw. "However, India took a very pragmatic approach, while understanding that capital is very scarce, irrespective of what some experts may say," he added.

Vaishnaw said that the Indian government focused on vulnerable population for financial aid, free food and free vaccines. All of that was done on digital platforms under the leadership of Prime Minister Narendra Modi, he added.

"Those decisions have shaped the destiny of our country and put us on a path of resilient and sustainable growth. We have been able to achieve high growth and moderate inflation because of the pragmatic approach we took," he added.

'Moderate inflation was the prime target and that too for a longer 10-year period time frame'

"Our prime minister also ensured that fiscal policy and monetary policy moved in tandem, which many other countries couldn't do. We ensured that moderate inflation was the prime target and that too for a longer 10-year period time frame and it ensured that we returned to a high growth rate quickly," he added.

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