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No spike in inflation due to rising crude prices: PM Modi at AIIB meet

“Our macroeconomic fundamentals are strong with stable prices, a robust external sector and a fiscal situation firmly in control. Despite rising oil prices, inflation is within the mandated range,” Prime minister Modi said.

business Updated: Jun 26, 2018 13:55 IST
Press Trust of India
Press Trust of India
Press Trust of India, Mumbai
AIIB,AIIB meeting Mumbai,Narendra Modi
Prime minister Narendra Modi delivers his inaugural speech for the third annual meeting Asian Infrastructure Investment Bank (AIIB) Forum.(PTI Photo)

Rising crude prices have not resulted in a spike in inflation and the macroeconomic fundamentals of the country remain strong, Prime Minister Narendra Modi said at a gathering in Mumbai.

Addressing the third annual meeting of the governors of the Asian Infrastructure Investment Bank (AIIB), Modi also said the BJP-led government is committed to fiscal consolidation.

“Our macroeconomic fundamentals are strong with stable prices, a robust external sector and a fiscal situation firmly in control. Despite rising oil prices, inflation is within the mandated range,” he said.

The government is firmly committed to the path of fiscal consolidation, he said, adding the government debt as percentage of GDP is consistently declining.

“The external sector remains robust. Our foreign exchange reserves of over $400 billion provide us adequate cushion. Global confidence in India’s economy is rising. Total FDI flows have increased steadily and India continues to be one of the top FDI destinations,” he said.

Modi also asked the AIIB to ensure that its interest rates are affordable and sustainable apart from expanding its loan book by ten times to $40 billion by 2020 and $100 billion by 2025.

First Published: Jun 26, 2018 13:30 IST