India to grow at 'moderately brisk rate', inflation to ease: Finance Ministry report
The "Monthly Economic Review for October 2022" also issued a warning, stating that the tightening of US monetary policy is a "future risk" that could result in a drop in stock prices, a depreciation of national currencies and more. The ministry said, so far in the current year, India’s food security concerns have been addressed and will continue to receive the utmost priority from the government.
FollowDespite global monetary tightening, India is well positioned to develop at a "moderately brisk rate" in the upcoming years because to macroeconomic stability, according to a study released by the finance ministry on Thursday. Additionally, it stated that the advent of kharif crops will relieve inflationary pressures in the upcoming months, and that job chances will rise in tandem with an improvement in business prospects.
The "Monthly Economic Review for October 2022" also issued a warning, stating that the tightening of US monetary policy is a "future risk" that could result in a drop in stock prices, a depreciation of national currencies, and an increase in bond yields, which would raise borrowing costs for many governments around the world.
According to the report, growing concerns about an oncoming global recession have been fueled by a sharp decline in global economic expectations, soaring inflation, and deteriorating financial circumstances.
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The effects of the global downturn may dim India's prospects for its export sector. Future economic development will be boosted by persistent domestic demand, a resurgent investment cycle, a strengthened financial sector, and structural reforms.
The study stated that due to the importance it gave to macroeconomic stability, India was well-positioned to develop at a fairly brisk rate in the next years "in a world where monetary tightening has hampered growth prospects."
According to the ministry, the government has already taken steps to address India's food security problems this year and will do so going forward. It stated that "relatively lower global commodity prices and the start of the new kharif are also anticipated to moderate inflationary pressures in the coming months."
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After remaining high for the majority of the year, India's wholesale and retail price inflation decreased in October, primarily as a result of supply chain disruptions caused by the outbreak of the Russia-Ukraine war in February. Retail or CPI inflation fell to 3-month low of 6.7 per cent, while wholesale or WPI inflation was at 19-month low of 8.39 per cent.
(With PTI inputs)
