Members expressed concern at a parliamentary standing committee meeting on Thursday over the falling value of the rupee and sluggish private investment in the country even as the government said despite challenges India’s economy was emerging stronger.
At a meeting of the parliamentary standing committee on finance, headed by BJP leader Bhartruhari Mahtab, Economic Affairs Secretary Anuradha Thakur and Chief Economic Advisor V Anantha Nageswaran made a presentation about the economic situation of the country and discussions took place on the evolving dynamics.
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“Issues such as rising prices, inflation, the conflict in West Asia, and China’s recent stringent laws aimed at protecting its industries were deliberated upon. While there are still certain headwinds, I would say that despite these serious challenges, India’s economy is emerging in a stronger position,” committee chairman Mahtab told reporters after the meeting.
He said there are several encouraging indicators as household savings have increased compared to last year, and investment is also rising.
“However, the challenge is that while the government investment and capital expenditure are increasing, private investment has not been picking up at the same pace. This is an issue that we need to address,” he said.
Mahtab said the committee decided to meet again in the third week of the month.
‘We will also prepare a report that will not only describe the challenges we face but will also provide recommendations on what the government should consider to address them,” he said.
Asked whether the issue of the falling value of the rupee figured in the meeting, Mahtab said the MPs discussed the issue. “Falling rupee is also a matter of concern. The RBI is taking steps to control it,” he said.
On sluggish private investment, he said: “That is a concern, that is a concern. For that, certain policy changes are required. At the same time those who are moving out of China, what type of support we are providing to set up their industries in our country, that is also we have to see.”
Mahtab said the panel members also asked about the trade agreement India is going to sign with the United States.
“But the major concern is when we are attracting FDI in large number, there is also a flight of FDI from our country. What the chief economic advisor has said that it is cyclical in nature. In three years’ time, when FDI is increasing, there is another three-year term when there is flight,” he said.
But the greater challenege, Mahtab said, is that the US is attracting FDI in larger volumes — a large number of people who were investing in other countries are now going to the US for investment.
He said another challenge is that after 2022, the interest index of most countries has been increasing.
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“When Japan had zero interest rate, now they are providing 2-3% interest rate… so flight of money is also taking place in those developed countries, whereas earlier the emerging economies were getting most of the investment. These are certain challenges which we have to look at. But India has a very good market and we will meet those challenges. The government has taken a number of steps, the government has provided a corpus fund,” he said.
Those who attended the meeting included Congress MPs Pramod Tiwari, Gaurav Gogoi, Manish Tewari, BJP MPs PP Chaudhary, Dinesh Sharma, and LJP (R) MP Arun Bharti, among others.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
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