Global disturbances will hamper recovery across the world: FM Sitharaman

The minister, however, was hopeful that some restoration of peace at the earliest would happen, based on which recoveries could be sustainable.

Finance minister Nirmala Sitharaman said on Friday that recovery not just for India but for all countries will be severely hampered by the current disturbances. India’s development is going to be affected by the newer challenges emanating in the world, she said.

No one country can today plan for its recovery, particularly in an age when global value chains have already got countries closer to each other, and these value chains are facing challenges and threats because of disturbances, the FM said. “Peace is being threatened and post the second world war, a war of this significance, this impact on the globe probably [has not been] felt,” she said.

The minister, however, was hopeful that some restoration of peace at the earliest would happen, based on which recoveries could be sustainable.

Sitharaman was speaking on ‘India’s approach to economic recovery in the post-pandemic world’ at the valedictory session of the Asia Economic Dialogue 2022, organised by the ministry of external affairs and Pune International Centre.

India’s approach to economic recovery is unique as the country is diverse, and development is not comparable in all regions. Income disparities are a serious issue, so the approach has to be more inclusive and sensitive, she said. India plans to come out of the pandemic and is looking forward to ‘India at 100’, the FM said.

The country will be built on three pillars: transition towards greener energy, investment in soft and hard infrastructure, and health and education.

From next year, transition to green energy will be a big feature in preparing the Budget, the FM said. The process of shifting from fossil fuel and coal to greener energy will require commitment from political leadership and money to invest, with a lot of private industry participation, she said.

Sitharaman stressed on the need for the central and state governments working together on these three pillars.

https://www.financialexpress.com/economy/global-disturbances-will-hamper-recovery-across-the-world-fm-sitharaman/2445048/