India in no hurry to unwind stimulus but oil a worry, says Sitharaman

India is in no hurry to withdraw stimulus provided to support the economy as policymakers want to ensure that the country is on a durable growth path, Finance Minister Nirmala Sitharaman said.

However, rising crude oil prices are emerging as a huge challenge and the uncertainty could upend some of her plans to get the economy back on track, she said in an interview in New York Sunday.

“The challenge I will face, and the teams are also watching in the ministry, is the way the fuel prices are leading to a big crest,” Sitharaman said. “This uncertainty is a big element for me, which is still an imponderable and I don’t know how much will have to be diverted from other most important considerations, and that’s the challenge I see,” she said.

She added the government has already committed a certain amount of public spending to build infrastructure in an effort to provide support to the economy. 

The Reserve Bank of India and the International Monetary Fund expect India to grow at 9.5% this financial year but rising fuel prices -- India imports a bulk of its requirements -- and a coal shortage could be a major obstacle.