Monetary, fiscal authorities taking steps to moderate inflation, push growth: DEA Secretary Ajay Seth

Customers shop at market stalls selling computer accessories, clothes and other household goods at Nehru Place IT Market in New Delhi, India, on Sunday, Dec. 12, 2021. India's consumer price inflation likely picked up in November for a second month in a row with core inflation likely to have increased to 5.3% from 5.2% in October as companies have started raising retail prices to pass on higher input costs to consumers, according to media reports.

Monetary and fiscal authorities are taking steps to moderate inflation and push growth, Department of Economic Affairs Secretary Ajay Seth said on Wednesday.

His comments came in the backdrop of Reserve Bank of India (RBI) hiking key interest rate by 50 basis points to tame inflation. The central bank also upped inflation projection to 6.7 per cent while maintaining growth estimate at 7.2 per cent for the current fiscal.

"There are domestic challenges and larger ones are there in the global scenario. Whatever it takes for monetary and fiscal authorities, those actions are being taken. We (are working) to moderate the inflation (and) at the same time keep the growth efforts as earlier," Seth told reporters. He was responding to questions on RBI decision on the interest rate front.

Seth said that apart from growth and inflation, the authorities are also working on management of rupee and keeping fiscal balance. Both monetary and fiscal authorities are working towards that goal, he added. "There cannot be any copy book solution. As new information emerge, they are analysed and whatever it takes to meet those challenges those measures will be taken," he added.