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Current set of measures taken by RBI, Govt enough to tackle inflation: Finance Secy

Economic Affairs Secretary Ajay Seth has said that GDP numbers in Q4 are 4.1% have been impacted due to Omicron. GDP growth, he said, however, has returned to pre-Covid levels. GDP numbers reflect growth momentum is positive. High-frequency data is indicating good momentum in the current fiscal. Seth said that there is no discussion on inflation-indexed bonds currently with RBI.

ET Now Bureau

Updated Jun 1, 2022, 13:05 IST

Finance Secretary TV Somanathan (file picture).

Photo : PTI

KEY HIGHLIGHTS

No discussion on inflation-indexed bonds currently with RBI.
No risk to 7.5% GDP growth estimate of FY23.
For the moment measures taken by govt, RBI to tackle inflation are enough.

By Meghna Mittal.

New Delhi: Finance Secretary TV Somanathan said that for the moment measures taken by govt, RBI to tackle inflation are enough. There is no need to revise our growth estimate lower in FY23. There are known challenges to growth in the current fiscal which may continue.

Economic Affairs Secretary Ajay Seth has said that GDP numbers in Q4 are 4.1% have been impacted due to Omicron. GDP growth, he said, however, has returned to pre-Covid levels. GDP numbers reflect growth momentum is positive. High frequency data is indicating good momentum in the current fiscal.

Seth said that there is no discussion on inflation-indexed bonds currently with RBI.

He also said that there is no risk to the 7.5% GDP growth estimate for FY23.

The Q4 FY22 GDP numbers are at 4.1% while the previous fiscal GDP is at 8.7%. There has been a sequential decline in growth from Q1 to Q4 in the last fiscal.

Inflation has also been raging high due to supply disruptions, high commodity prices, the Russia-Ukraine war, and high fuel prices. It is because of this that RBI had increased the repo rate by 40 bps in a surprise MPC meeting.

The wholesale price index (WPI) inflation rose to its highest level in the current series in April 2022 on the back of hardening commodity and vegetable prices.

Govt had cut excise duty on fuel, and cut duties on edible oil, and steel. It had also put limits on sugar exports and banned wheat exports.

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