RBI will take adequate steps to manage inflation, says Sitharaman

The Reserve Bank of India (RBI) will take necessary steps to keep inflation within expected limits, Union Finance Minister Nirmala Sitharaman said during a post-budget interaction in Jaipur, Rajasthan.

The statement comes as inflation jumped to 6.52 percent in January compared to 5.72 percent in December. Food inflation and core inflation remained stagnant in January. Meanwhile, US inflation also jumped 0.40 percent to 6.40 percent in January. However, Sitharaman said that "the RBI is watching the Indian economy and taking the call when [intervention] is required," Sitharaman said. In addition, the inflation situation is unique for each of the countries in the developing markets, the finance minister added.

In an effort to curb inflation, the government has also taken some measures such as incentives to farmers to grow pulses. The growth of legume prices has been high for a long time. This incentive is expected to encourage higher sowing and production of pulses, which may help limit price increases. A reduction in the import duty on pulses also contributed to this. Similarly, rising prices of edible oils have been brought under control by making imports almost duty-free, Sitharaman said.

In addition, the government has also announced free grains for 80 million people since COVID-19. Commenting on allegations of vindictiveness by the government regarding the use of investigative agencies raised by the Congress party, Sitharaman said that "Congress should not talk about corruption at all and then bring in the angle of vindictiveness". She added that successive Congress governments were ousted from power on corruption charges. "It is a shame. Congress governments, one after the other since the first one, have only come out of power on issues related to corruption," she said.

The finance minister said on Monday that investigating agencies conduct investigations only after doing their homework and based on the necessary prima facie evidence. "It is strange that a party whose past and previous presidents are out on bail in corruption-related matters is talking about corruption," Sitharaman said, attacking senior Congress leader Rahul Gandhi. The prime minister answered the opposition's questions in parliament, she added. "The Congress should learn to either stay out of the House so they can accept the answer the Prime Minister gives them, or when they make allegations, they should present it with substantial evidence and not using 'spit and run' tactics," Sitharaman said. With regard to the controversy surrounding the Adani Group, Sitharaman said the Prime Minister refrained from commenting as the matter was before the court.

Discussing the sustainability of state schemes, the finance minister said that when a state runs a scheme despite being financially unviable, it turns out to be a burden on other states. "If the financial situation of the state is good and it is able to finance the program from the budget, then there is no problem. But if the financial situation of the state is not good and still they manage the plans and shift the burden to others, then there is a problem,” Sitharaman added.