The Narendra Modi government completed one year in office and faced many hurdles from spiralling price rise, unseasonal rains to key Bills stalled in Parliament. Speaking exclusively to Network18, Chief Economic Advisor Arvind Subramanian said the government has adequate food stocks, so much so that the government will be able to contain inflation even if the monsoon is insufficient.
Here is an excerpt from the interview:
Shereen Bhan: The government may dismiss criticism that not enough has actually changed on the ground, but in terms of the recovery, and the slowdown and the paces of change, you can't argue that it is slower than anticipated?
Arvind Subramanian: I think the macroeconomy has turned around. The question is whether economic growth has turned around in line with expectations, and in line with the actions undertaken. But I think it's fair to say that the real economy is recovering, still not surging.
I think the inflation front is one of the bright spots of the economy.
Shereen Bhan: In terms of the agricultural challenges, we talked about the distress as far as agriculture is concerned, the distress in rural India. If we do have a below par monsoon it is probably going to make things worse. What are you most worried about when it comes to agricultural growth?
Arvind Subramanian: For agricultural growth, there are two sources of concerns. We have stocks, so containing the inflation part of it will be less difficult, if the monsoon is bad it is going to further aggravate the stress in rural income, so we have to find short term and long term ways.
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