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Chief Economic Adviser (CEA) V Anantha Nageswaran has said that amid global uncertainties caused by the ongoing Russia-Ukraine war, India is still better placed among the large economies because of an improved financial system and a robust corporate health. He said India has already taken a host of reforms in banking and other sectors and is now focussing on stepping up public investment. Besides, he said, Indian corporates are in good financial health as they have trimmed their balance sheet.

CEA said ‘so we are entering into this decade and this conflict (Russia-Ukraine) with a much better financial system and a much robust corporate financial health. So that gives us a lot of cushion and the Reserve Bank of India has ample foreign exchange reserves and with its recent monetary policy move, it has also signalled its determination to combat the inflationary pressures.’ India has entered this period with a fairly reasonable comfortable degree of macro economic and policy stability, he said, adding, the government has taken several steps, including raising capital expenditure.

Talking about the fallout of the ongoing war, Nageswaran said prices of commodities especially fuel and some foodgrains, have increased, stoking global inflation. It also led to wheat shortage and as a result many countries are facing rising prices. He said ‘while inflation is one aspect of it, food security is another aspect. Thankfully in India we are relatively far more comfortably placed than others. But there are several countries where the availability of food is more important than even the price’.