Nirmala Sitharaman: Finance Minister said in the BRICS meeting, that India's growth will be supported by financial spending

Union Finance Minister Nirmala Sitharaman said that the country's growth will be driven by fiscal spending. Participating online at the second meeting of BRICS Finance Ministers and Central Bank Governors (FMCBG) chaired by China, he said that BRICS needs to engage in dialogue and exchange experiences, concerns, and ideas for sustainable and inclusive reconstruction. The facility should continue to serve as a platform.

Government hikes capital expenditure

Speaking on India's growth outlook, Sitharaman said economic growth would be helped by fiscal spending as well as boosting investment. The Finance Minister said that the growth of the economy is supported by investment incentives along with fiscal spending. The government proposes to significantly boost public investment by raising capital expenditure by 35.4 percent to Rs 7.5 lakh crore or 2.9 percent of gross domestic product (GDP) in the current fiscal. Apart from this, BRICS Finance Ministers and Governors of Central Banks also discussed financial issues like Infrastructure Investment, New Development Bank, and BRICS Contingency Reserve Arrangement (CRA).

Retail investors took over the market

At an event organized by the Ministry of Corporate Affairs as part of the Amrit Mahotsav of Azadi on Tuesday, Finance Minister Sitharaman said that there has been a significant increase in the number of retail investors during the pandemic. These investors are dealing with the shocks in the stock market due to the sell-off of foreign portfolio investors. He said that retail investors have come in such a big way that they are handling the shocks, if FPIs went away, then in fact our markets would not face much volatility.

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