Curbing Inflation Must be a Priority, Says FM

Finance Minister Nirmala Sitharaman emphasized that restoring normalcy must be the top priority for governments and industries worldwide over the next decade, given the disruptive effects of wars and skirmishes on supply chains, inflation, and economic growth. Speaking at the Global Economic Policy Forum organized by the Confederation of Indian Industry (CII), Sitharaman highlighted the critical role of dialogue in resolving conflicts, stating that wars and disruptions should be avoided as they are the primary causes of supply chain instability and food value chain disruptions.

She identified inflation as a pressing global challenge, transcending borders and exacerbated by the aftermath of the pandemic and conflicts like the Ukraine war. Sitharaman urged a blend of economic priorities with political and strategic considerations, warning of the dangers of ignoring the interplay between geopolitics and economics in shaping supply chains. She advocated for restoring, realigning, or expanding global supply chains to mitigate geopolitical risks and ensure the resilience of economies.

The minister also addressed the ongoing global debate on reducing dependency on concentrated supply chain hubs. She pointed out that such dependencies often result from political and strategic decisions rather than economic inefficiencies, underscoring the need for integrating political and strategic insights into economic policymaking. Sitharaman called for a concerted effort to achieve global stability and foster economic growth by prioritizing dialogue, avoiding conflict, and addressing the geopolitical influences shaping global economic dynamics.