Inflation’s impact on India to be negligible: Nirmala Sitharaman quotes UNDP report

New Delhi: The impact of inflation will have a very minimal impact on India’s poverty, said Finance Minister Nirmala Sitharaman on Tuesday quoting the recent report of the United Nations Development Programme (UNDP). She gave the credit of no impact on India to the targeted transfers, helping poorer households cope with price spikes. The UNDP report was released under the title ”Addressing the Cost of Living Crisis in Developing Countries”.

A recent UNDP report “Addressing the Cost-of-Living Crisis in Developing Countries” shows that inflation will have only a negligible impact on poverty in India, adding that targeted transfers (such as what India has been doing) help poorer households cope with price spikes. (1/4)

— Nirmala Sitharaman (@nsitharaman) July 12, 2022

Sitharaman wrote in the second tweet that India will not push anybody below the lower poverty line of $1.9/day.

”The report shows inflation in India will not push anybody below the lower poverty line of $1.9/day, while only 0.02% & 0.04% of the population will go below higher poverty lines of $3.3/day & $5.5/day, respectively,” wrote Sitharaman.

The report says that price hikes in food and energy could push up to 71 million people into poverty across the world. However, the UNDP stated that targeted and time-bound cash transfers help to reduce the impact.

”The report says that food and energy inflation could push up to 71 million people into poverty globally. It also says that “We find that targeted & time-bound cash transfers are the most effective policy tool to address the impacts,” read the third tweet of the Finance Minister.

The report says that food and energy inflation could push up to 71 million people into poverty globally. It also says that “We find that targeted & time-bound cash transfers are the most effective policy tool to address the impacts.” (3/4)https://t.co/MIp7TR2zcT

— Nirmala Sitharaman (@nsitharaman) July 12, 2022

In the last fourth and the last tweet, she said, ”From the beginning of the pandemic, Modi Govt has implemented such targetted & time-bound transfers of food and cash to those at the bottom of the pyramid through the PMGKAY and PMGKY. These results highlight the effectiveness of this strategy.”

From the beginning of the pandemic, Modi Govt has implemented such targetted & time-bound transfers of food and cash to those at the bottom of the pyramid through the PMGKAY and PMGKY. These results highlight the effectiveness of this strategy. (4/4)https://t.co/MIp7TR2zcT

— Nirmala Sitharaman (@nsitharaman) July 12, 2022