(Bloomberg) — Indian Finance Minister Nirmala Sitharaman said her nation’s economy appeared, sound and expressed confidence that quickening inflation will be controlled.
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“We’re looking very sound,” Sitharaman told Bloomberg Television’s “Balance of Power” with David Westin. “The recovery seems to be sustainable.”
India’s economy had started slowing even before the pandemic, mainly due to a crisis in its shadow banking sector. The shock of Covid-19 led to its biggest-ever contraction, with restrictions sapping demand in the consumption-driven economy.
The IMF this week estimated an 8.2% pace of expansion this year, which would still make India the fastest-growing major economy. It would also be in line with the government’s projection of 8% to 8.5%.
In a separate interview, Sitharaman cited the 7.2% projected by the Reserve Bank of India for the fiscal year that began April 1 as her “bottom line” and said…