Finance Minister Nirmala Sitharaman said in Rajya Sabha on Wednesday that the tendency of the global economies to put money in the hands of people in the wake of the Covid-19 pandemic has stoked the recessionary situation. FM pointed out that the targeted approach followed in India not only helped revival of the economy but also ensured that the economy did not drift towards recession. “Major economies in the world are facing recession and India’s growth and exports will fall in the coming quarters. Is the government seized of the fact was the question raised,” Sitharaman said referring to the points raised by former finance minister P Chidambaram during debate on supplementary demand for grants.

“Major global economies are facing recession because of the way in which they handled Covid. The tendency was to go and give money in the hand of the people. Borrow and spend more to reboot the Indian economy was a suggestion given to us. As we close 2022, we should see the negative effect of such a suggestion by the other countries and recession is happening there perhaps,” Sitharaman added. Pointing out that the situation was handled in a different manner in India, Sitharaman said, “Thankfully because of the targeted way in which the honourable Prime Minister decided to give relief during Covid has kept us on a safe course of helping revival and not getting into recession.”

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