Despite odds, BJP hopeful on containing inflation

Recovery Tracker Showing Positive Sign

- Higher inflation quite harsh for the poor sections

- Modi govt focusing on welfare schemes for them

- India clocks 678 cr transactions with a gross value of Rs. 11.84 lakh cr

- The pandemic and war in Europe have pushed the economic issue to the central stage globally

- Direct tax revenues rose 24%

Mumbai: The Bharatiya Janata Party (BJP), which is currently leading the government at the Centre, is quite confident that the Reserve Bank of India will be able to meet its target of reining in inflation at six per cent in future.

Talking to Bizz Buzz, Gopal Krishna Agarwal, National Spokesperson on Economic Affairs, Bharatiya Janata Party, says: "We are hopeful that RBI's target of six per cent inflation will be met. Globally there is a recession. Commodity prices are softening, crude oil prices are also coming down."

With the above strengths, we are in a better position to meet all challenges. Inflation is in control. RBI looking to bring it down from current seven per cent to six per cent, which is much lower than even in developed countries like the US and also in Europe, he said.

Hence, inflation will cool down in the days to come. We know that higher inflation hits the poor hard. That's why the Modi government is focusing on a host of welfare schemes for the poor sections of the society, he said.

According to him, the pandemic and war in Europe have pushed the economic issue to the central stage globally. Many countries are facing economic challenges and ome are on the verge of sovereign default and some have already defaulted. On the other hand, India is the fastest growing economy in the world. India is now the fifth largest economy in terms of GDP and is poised to be the third largest economy in near future.

And there are more positive economic indicators. Purchase Manager Index (PMI) of services and manufacturing is in expansion mode. In September, service sector's PMI is 54.3 and manufacturing sector's PMI is 55.1. Bank credit is steadily growing. In August, bank credit clocked 15.5 per cent upswing, which is the highest in nine years. The central government's expenditure in infrastructure is on rise. Capex by PSU is on the rise and corporate sector earnings are also growing, he added. Direct tax collection for the year has increased by 24 per cent and

GST collection for September has crossed Rs 1.47 lakh crore, he said.

According to Agarwal, "prospects of economic growth can't be analyzed through challenges alone but depend on the strength of the institutions to manage them."

"We have challenges, but our strength is based on decisive government with strong leadership, prioritizing national interest in forms like crude oil purchase policy despite global pressure and bilateral trade in rupee terms with more and more countries," he said. The fact that India recorded highest number of real-time digital transactions in the world goes to prove the kind of progress the country had made, he said, adding that nearly 678 crore transactions have occurred in September with a gross value of about Rs 11.84 lakh crore.

As of now, India has 100 unicorns with robust startup ecosystem. Post independence, India has seen three phases of economic models - the failed socialism of Congress government, the crony capitalism of the UPA government, and reform-oriented development model of the NDA government, he pointed out.

"We have a strong and decisive leadership of Prime Minister Narendra Modi who has ensured a growing and resilient economy with the welfare of all sections of society", Agarwal added.

We have challenges, but our strength is based on a decisive government with strong leadership that prioritizes national interest when it comes to crude oil purchase policy, bilateral trade in rupee terms with more and more countries

- Gopal Krishna Agarwal, national spokesperson (economic affairs) at BJP