New Delhi, 4 June 2022: The measures taken by the government to curb inflation are strong. RBI has already increased the repo rate and the government has reduced the excise duties to reduce the prices of the premium commodities but more needs to be done on the supply side, believes Dr. S.P Sharma, Chief Economist at PHD Chamber of Commerce and Industry.
“I think global supply chain needs to be connected more so that the impact of the high commodity prices, which are on boil in the international trajectory, can be mitigated. If the inflation remains high, then that will be a challenge for the economy,” said Dr. Sharma while speaking exclusively to Ten News.
On recently released Q4 GDP numbers, the chief economist stated that they had expected 9% growth. But 8.7% is also inspiring, amidst the challenges such as the Russia-Ukraine war, inflation and high commodity prices. “Especially in the coming years, our growth will remain intact in the back of various reforms and initiatives taken by the govt in the last 2-3 years, which are very proactive reforms for the business community, the MSMEs, and all other segments of the economy, he added.
“Now we have aspirations of becoming a $5 trillion economy. We are already at $3.7 trillion, and in next 4-5 years, we will be able to achieve $5 trillion economy,” Dr Sharma said.
While addressing the challenges facing global economy, Dr. Sharma talked about the geopolitical developments and high commodity prices. He mentioned that all the central banks throughout the world are increasing the policy rates which will dampen the sentiments of the speculators.
On comparison of Indian economy with Sri Lankan economy by opposition leaders, he stated that there is no comparison between the Indian economy and the Sri Lankan economy.
“We have a strong base whereas the Sri Lankan economy is majorly based on the tourism sector. Our economy has too many strengths like strong agriculture sector which is very resilient and strong services sector and manufacturing sector are also growing,” he added. Dr Sharma also said that India’s foreign exchange reserves number and increasing exports numbers are also assuring.
“All these strengths are promising for the Indian economy and there is no need to compare it with other economies,” he concluded.
