The Indian rupee has hit the highest inflation point in over four decades. The frequency of oil prices has also gotten higher since the inception of the Russia-Ukraine war. This situation is troublesome as no transportation is possible without oil. Russia and Ukraine have also stopped exporting grain to India. This has made many companies increase the prices of flour and other related products, making the country face demand-pull and cost-push inflation.

Also, the demand for goods has increased after the Covid-19 pandemic due to restrictions. But, it takes a long time for companies to increase the supply of goods. All these factors have led to higher inflation in the country. This has made the Congress attack India’s Finance Minister and say the country desperately needs a new Finance Minister

Why does Congress blame the Finance Minister?

The Congress said the minister and the Modi administration are responsible for high inflation and an increase in unemployment. These come after the Finance  Minister, Nirmala Sitharaman, says India’s GDP has continued to grow at a faster pace than the global economy of countries like the United States and China. But congress claims the United States has $21 trillion and China has a $ 14.8 trillion economy compared to India’s $2.8 trillion economy.

Nirmala Sitharaman’s approach to bringing back black money has also given rise to an awful perception that the government lacks the political will to nationalise illegal assets of Indians abroad. India needs a Finance Minister who can sell reforms to citizens, scrap Participatory Notes and deliver on the promises laid out in the BJP Manifesto.

Why India needs a new Finance Minister

According to sources, the Finance Minister has been high on rhetoric and low on the action with bureaucracy. Her two-year performance has been no unconventional or out-of-the-box ideas. Instead, it was focused on the policies of the United Progressive Alliance, bringing back black money, and implementing a gold monetization scheme. The administration has also forced Public Sector Undertakings to pay higher dividends to achieve budget targets. Furthermore, it has failed to transfer the benefits of lower crude oil prices,  and fight inflation by raiding commodity traders. This has raised the need for an immediate course correction.

Who will be the next Minister of Finance?

India’s Prime Minister, Narendra Modi is working hard and meeting his delegates to see how to fix the Indian economy. Among others, Former ICICI Bank Chairman, Kundapur Vaman Kamath is seen as a front-runner, replacing the current Finance Minister Nirmala Sitharaman. He has also worked with some of India’s most accomplished and acknowledged business leaders. Kundapur Vaman Kamath is currently the Chief of the New Development Bank of BRICS.

In conclusion

Leading India out of inflation depends greatly on the budget and strategies of the minister of finance and the Reserve Bank of India. Lower interest rates and creating better financial reforms might help change the situation. But this strategy needs a thinking economic man or woman at the helm of the finance ministry.