Finance Minister Nirmala Sitharaman downplayed fears of a global transition from China’s Evergrande crisis and said the central bank and government were closely monitoring any “taper tantrum” risks arising from a possible change in the US Federal Reserve’s policy stance. are keeping.
Without naming China, it also red-flagged the growing tendency of smaller countries to fall into debt traps that threatened their sovereignty.
“I am sure that will not be specific to one country, but there will be this big issue of debt stability, sovereignty and smaller countries are facing a very challenging and challenging situation when these two extremes are forced ,” He said. At the inaugural session of ICRIER’s annual G20 conference.
Emphasizing that India and the world have learned lessons from the 2008 global financial crisis, Ms Sitharaman said she was not sure that the Evergrande crisis would emerge at the upcoming G20 summit. “But without specifically mentioning the G20 or any one particular country, it can be seen that globally, there may be a sense of concern, but there is no fear that it is definitely going to affect us,” He said in response to a question from NITI Aayog Vice-Chairman Rajiv Kumar on the challenges facing China’s real estate sector in global markets.
‘debt trap’
“Specifically, not Evergrande, but debt stability is an issue. I am sure every global forum has to address and talk about it; specifically, the loans that are being given, which are the sovereignty of a nation. So it is a matter of grave concern and many countries are sitting to say: What is happening in the world? Ms Sitharaman remarked.
Emphasizing that India has learned its lesson from the way it handled the past taper tantrum, which has made it one of the ‘fragile five’ economies, she said: “With the Reserve Bank of India, we will certainly Watching.”
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