India Offered Lowest Inflation in 9 Years, High CPI Figures Short-term 'Hiccup', Says Piyush Goyal

Commerce minister Piyush Goyal on Saturday said India offered the lowest inflation rates in nearly a decade, calling the high consumer price index inflation figures for July a short-term “hiccup”. Highlighting the country’s progress in the last nine years under the Narendra Modi-led central government, he said the country was enjoying the fruits of its young demographic dividend with an average population aged under 30.

Speaking at Moneycontrol’s Indian Family Business Awards 2022, where he felicitated the winners, the union minister said the Indian economy was in good shape, registering high growth and comfortable foreign exchange reserves. “With inflation despite the hiccups we are facing in the short term today, we have seen nearly a decade of controlled inflation. In the India story of 75 years, India in this nine-year period has offered the lowest inflation rate that we have ever experienced,” Goyal was quoted as saying at the award ceremony.

According to a report published by Moneycontrol, data released on August 14 showed that headline retail inflation shot up to a 15-month high of 7.44 percent in July, higher than the estimated 6.6 percent. The Reserve Bank of India’s monthly bulletin showed that inflation is likely to average far higher than 6 percent in the ongoing quarter.

Goyal said India, which is now the fastest growing economy, has the ability to become one of the top three in the world. “India today is enjoying the fruits of our demographic dividend with the average population under 30 years of age. All estimates seem to suggest we will continue to be a young population,” he was quoted as saying. In terms of GDP, he added, India is likely to become a $35-trillion economy in the next 30 years.

Moneycontrol reported that the minister said the BJP leadership at the Centre had “inherited” a number of challenges when it came to power in 2014 — unpaid oil bonds debt, high interest costs, forex crisis, high inflation and interest rates, rapidly decreasing economic growth, low foreign direct investment, and faltering exports.

“The India story is completely different now from what the current government had inherited, which was large amounts of oil bond debt, high inflation and interest rates, low growth and faltering exports,” he was quoted as saying in the report.

Goyal recounted the achievements of the current regime and the country’s performance during as well as after Covid. He spoke about how 800 million people are getting free food, due to which the country does not have a single starvation death. He also mentioned the construction of toilets under the Swachh Bharat Abhiyan.

“This is India’s time in the sun — to grow, invest and expand. India will create value for shareholders but also focus on sustainable and inclusive growth. Every business big or small contributes to India’s growth story. PM Modi, over nine years, provided strong leadership for India to rapidly progress from a developing nation to a developed nation,” he said.

The minister said it is a 30/30 journey for India because, with an average population under 30 years of age, India will continue to be a large young population for the next 30 years as well.

Moneycontrol further reported that India is said to have overtaken China as the world’s most populous country in April 2023, as per projections by the UN. The Centre has projected a GDP of 6.5 percent for the next financial year.

“In the years we will collectively make India owners’ pride, neighbours’ envy. India will create value for shareholders but also focus on sustainable and inclusive growth,” Goyal added.