Montek Singh Ahluwalia on India's Economic Prospects

The video discusses the impact of rising commodity prices, particularly oil, on inflation and economic growth. It highlights the challenges faced by the Reserve Bank in managing inflation and the fiscal deficit pressures due to increased energy and fertilizer prices. The possibility of India buying discounted oil from Russia is considered, along with the implications of bypassing the SWIFT system. The video also compares India's economic situation with Sri Lanka's crisis, emphasizing India's stronger foreign exchange reserves and growth potential.

What is the Reserve Bank's role in managing external sources of inflation?

• It has a significant impact on external inflation.

• It has limited impact on external inflation.

• It can completely control external inflation.

• It ignores external inflation sources.

How might the Indian government address the fiscal deficit amid rising prices?

• By ignoring the fiscal deficit.

• By passing on price increases to consumers.

• By increasing subsidies on all commodities.

• By reducing tax revenues.

What is a potential strategy for India to manage oil imports?

• Buying oil at market price from the US.

• Purchasing discounted oil from Russia.

• Increasing domestic oil production.

• Reducing oil consumption drastically.

How does India's economic situation compare to Sri Lanka's?

• India has lower foreign exchange reserves than Sri Lanka.

• India's fiscal deficit is out of control like Sri Lanka's.

• India has stronger foreign exchange reserves and fiscal control.

• India is facing a similar economic crisis as Sri Lanka.

What is India's anticipated growth rate post-pandemic?

• Between 3% and 4%

• Between 5% and 6%

• Above 10%

• Between 1% and 2%

What factors are expected to stimulate India's private investment?

• Reduced foreign investment

• Increased government spending

• A number of reforms on the table

• Higher interest rates

What is a key uncertainty affecting India's economic growth?

• The US-China trade war

• The Ukraine crisis

• The global pandemic

• The Brexit negotiations