The Reserve Bank of India will take necessary steps to manage inflation within "expected limits,' Finance Minister Nirmala Sitharaman said at a post-budget industry event in Jaipur on Monday. "In emerging markets, the situation is unique to each of the countries. In that I think, RBI is watching the Indian economy and taking a call as and when it is required," Sitharaman said.
For instance, in the case of pulses, the government is encouraging farmers to grow pulses to boost domestic production and has also reduced the import duty on some of the pulses to improve local availability.
When asked whether Budget 2023-24 would bring down inflation, Sitharaman said: "The government is taking a lot of steps to control inflation and will continue to focus on it."
She was in the city for a post-budget 2023 discussion with various stakeholders.
"We have taken a lot of steps, for example, encouraging farmers to sow pulses so that the production of pulses in India increases in the coming sowing season," Sitharaman told reporters here.
She further said that as a short-term step, "wherever we are importing, whether Masoor, Moong or whatever pulses, the government has reduced the import duty to single digit or has completely removed it. It has made imports convenient and pulses are available quickly and cheaply in India."
The Union Minister said, "the import of edible oil has been made almost free (tax) for the last three consecutive years, due to which palm crude or palm refined oil has also been (route) opened so that the supply of edible oil is easy and sufficient."
Headline inflation topped estimates with a 6.52% reading last month, breaching the top-end of RBI's target for the first time in three months.
HSBC expects inflation to tread slightly higher than the Reserve Bank of India's forecast at 5.4% in the year starting April 1. Core inflation, which strips out volatile food and fuel prices and is a major concern for policymakers, is estimated to come in at 5.5% in their view.
Answering a query on bringing petrol and diesel under the GST purview, she said, "Petrol and diesel can be taken under the GST if the GST council, which is not governed by any one government but finance ministers of all states, takes the call.
"The Centre government has made its intent clear by saying that we will put it as an item under GST. Now the GST council should take a call and let there be an ‘open charcha'."
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