Finance Minister Nirmala Sitharaman told the media that the Indian economy had not reached the level where the Reserve Bank of India (RBI) can begin pulling back liquidity as the third-largest economy in Asia is still recovering from the Covid-19 pandemic.

The government is ready to do everything needed to revive and support economic growth.

While addressing the Confederation of Indian Industry (CII) Annual Meeting 2021, Sitharaman said that some indicators suggest that the economy is buoyant and recovery is taking place post lifting of Covid-19 restrictions by states.

She said that foreign direct investment had noticed an increase of 37%, so far this financial year, while forex reserves rose to $ 620 billion as of July.

She said that the government has shown dedication to reforms even during the pandemic.

She urged the industry to invest in the Indian economy.

The Indian economy has not reached the stage where the RBI can start pulling back liquidity as the third-largest economy in Asia is still recovering from two waves of coronavirus, Sitharaman said.

She said that RBI understands that faster liquidity retrieval from the economy may not do the important things to win. While India will take measures to hold inflation, growth will be a priority in the current environment.

Sitharaman said that the government is undertaking all the rigorous work which is necessary to complete the proposed privatisation processes by this financial year ending.

Sitharaman further added that the commitment to disinvestment and privatisation is firmly ingrained in the policy, and the government has set a target to finish the privatisation of Air India and Bharat Petroleum Corporation Limited (BPCL) in FY22.

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