Am hoping govt, RBI will control inflation in medium term: EAC-PM member

Sanjeev Sanyal tells reporters govt is taking several steps to rein in process, including free rations, pruning of taxes; RBI has increased policy rate

Sanjeev Sanyal, a member of the Economic Advisory Council to the Prime Minister (EAC PM) has expressed the hope that inflation would be controlled in the medium term with monetary policy committee (MPC) of RBI and the government taking measures to rein it in.

A number of steps are being taken by the government to address the rising inflation, Sanyal told reporters on the sidelines of a convocation ceremony at IIM Kashipur in Uttarakhand.

"We are taking a number of steps, on one side, as you know we have extended the free ration distribution that was introduced, on the other hand, in November, we had reduced taxes... and you must be seeing that the Reserve Bank is slowly increasing the policy rate," he said.

Sanyal said these measures will keep inflation under control in the medium term.

"It doesn't mean that we don't still have problems. There are problems, the oil prices have increased throughout, there are problems due to that," he added.

He said the economy is all set to come out of the crisis caused by the Covid. The IMF has pegged the economic growth rate at 8.2 per cent, which is highest in the world. This has given a boost to the Indian economy even amid the Russia-Ukraine war.

"So, broadly, I would say that the pace in our economic system has come back, for the most part," Sanyal said.

On the government's course of action if the COVID situation worsens and the possibility of another nationwide lockdown, Sanyal said, "We are always alert. If a new wave comes, we will have to do something. But the updates that we have till now, the figures that are coming, we want to keep the economy open as far as possible."