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Ms Sitharaman said India would seek "affordable prices" to serve its large population. Finance Minister Nirmala Sitharaman said India could buy Russian crude oil near or above the G-7 price cap if the recent OPEC+ production cut raises energy costs. “We will have to constantly rethink where we are getting the best deal, as this is a critical input to the economy,” Sitharaman said in a wide-ranging interview, adding that the nation will seek “affordable prices” to serve its large population. .
On the sidelines of the spring meetings of the International Monetary Fund in Washington, Ms. Sitharaman shared her views on India's economic challenges, joblessness, the Adani-Hindenberg saga and the government's weak progress on privatizations. Below are edited excerpts and the video chat.
Growth
“We are doing enough to make sure the economy stays buoyant,” said Ms. Sitharaman. External factors, including the OPEC+ production cut and the "spillover of all decisions" related to Russia's war in Ukraine, are "the two main things I think would worry me more than anything internal."
He also said weak demand for manufacturing goods and services could hamper India's recovery going forward.
RBI break
The Reserve Bank of India has found a reasonable justification to pause for now, Sitharaman said. "They are watching the economy very closely and business leaders have greeted this pause with a sense of relief."
The central bank has given an aggressive outlook for inflation in India, but the upward trajectory of prices will depend on the upcoming monsoon rains, it said.
fiscal slippage
“We hope to continue on the right path,” he said, adding that the government will meet the budgeted target of 5.9% for the fiscal year that begins in April. "We were careful."
Privatization
In India, privatization goes through many filters as all stakeholders have to stick together, Sitharaman said when asked about slow sales of stakes in state-owned companies. “The idea is not to close units, it is more that the government wants to withdraw from companies where more capital is not possible, but there is interest outside and the economy inside will benefit if the companies remain in operation, so these considerations take time. . "
Ms. Sitharaman said that the upcoming national elections could be an obstacle. "Offers come after a certain level of certainty," he said.
Adani Saga
"The Indian government stays out of business," the minister said, adding that a panel controlled by the Supreme Court will investigate allegations made by US short seller Hindenburg Research against the Adani Group. "We think it may be inappropriate to comment even if the judiciary is reviewing it."
Employment creation
“The focus now is on vacancies that have already been sanctioned or available in the government,” said Ms. Sitharaman. There are a lot of skills that happen in the private sector, he said.
cryptocurrency
Other reports show that cryptocurrencies have macro stability implications, Ms. Sitharaman said. If there is a consensus among G-20 members, "we will consider a broad framework and let each country adopt its own legislative framework," he said.
