India is better placed than others to face inflation, says CEA Nageswaran

Stagflation is the phase when an economy faces moderation in GDP growth as well as high inflation

India faces the continued risk of inflation but is better placed than many developed and developing countries to face the situation, Chief Economic Advisor V Anantha Nageswaran said on Tuesday, adding that the risk of stagflation in the economy was rather low.

“Stagflationary risk to India is quite low compared to other countries,” he said at a media briefing after the release of FY22 and January-March GDP data. “India’s problem in handling inflation is not an isolated case. However, it is better placed than other nations as the fiscal and monetary authorities have both taken steps to alleviate the pressure,”