Russia’s ongoing war in Ukraine has disrupted global food and energy production and supply because both countries are major producers of these commodities. Prices have risen worldwide as a result of the war. The country’s chief economic advisor, V. Anantha Nageswaran, told CNBC’s “Street Signs Asia” on Wednesday that India is in a better position to weather the global rise in food prices.  

“It is a difficult situation… for many countries, but India is relatively better placed because of the abundance of locally produced food grain,” he said, adding that the government has also provided subsidies for food and cooking gas to alleviate the burden.

He stated that a subsidy that provides free food grain to nearly 800 million Indians has been extended until September. 

Despite a weak final quarter in the previous fiscal year, India’s chief economic advisor said the economy remains strong. 

“The momentum is fairly strong in the new fiscal year, which began in April.” “We saw strong numbers in manufacturing and services,” he said, adding that the government collected a record amount of goods and services tax revenue in April. 

He attributed the slower fiscal fourth quarter growth to pandemic shutdowns in parts of the country in January and February. 

“Supply chain disruptions slowed manufacturing, and global commodity prices increased in March,” he said.

Nonetheless, he believes the trend since then has been encouraging. 

“The economy’s underlying momentum remains strong.” Air travel is increasing in response to [increased] business travel… So, overall, despite so many global headwinds, the economy remains reasonably strong and poised to deliver moderate to high growth, according to Nageswaran.

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