Inflation will have a negligible impact on poverty in India,UNDP

Finance Minister Nirmala Sitharaman has said a recent UNDP report shows that inflation will have only a negligible impact on poverty in India. She added that targeted transfers help poorer households cope with price spikes. The Finance Minister said this while quoting the UNDP study on Twitter. She observed that the report - "Addressing the Cost-of-Living Crisis in Developing Countries" - shows inflation in India will not push anybody below the lower poverty line of 1.9 dollars per day. The report says that food and energy inflation could push up to 71 million people into poverty globally. It also says that targeted and time-bound cash transfers are the most effective policy tool to address the impacts.

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

Ms Sitharaman underlined that from the beginning of the pandemic, Narendra Modi government has implemented such targetted and time-bound transfers of food and cash to those at the bottom of the pyramid through the Pradhan Mantri Garib Kalyan Anna Yojana and Pradhan Mantri Garib Kalyan Yojana package.