India will not be impacted US Fed's likely tapering: CEA

Chief Economic Adviser (CEA) K.V. Subramanian on Tuesday said that India will not be affected by the possible tapering of the easy monetary policy by the US Federal Reserve by the end of this year.

Citing the "strong" macroeconomic fundamentals, he said that there should not be much concern.

"The fact that our macroeconomic fundamentals whether it's inflation, whether it's the current account deficit, whether it's our forex reserves, you know, and and all the others, metrics that I showed you, they clearly indicate that our macroeconomic fundamentals are very, very strong. I absolutely do not think that there should be that much of a concern," he told the media.

The statement by the CEA comes against the backdrop of the recent speech of the Fed Chairman Jerome Powell, wherein, he had hinted that the Fed may start rolling back its ultra-low rate monetary policy by the end of this year.

On the GDP data released for the first quarter of FY22, Subramanian said that the data reaffirms the government's prediction of an imminent V-shaped recovery made last year.

The GDP for the April-June quarter witnessed a growth of 20.1 per cent.

He noted that India poised for stronger growth from structural reforms, government's capex push, financial sector clean-up and reforms, and rapid inoculation.