Business

Inflation To Ease, Economic Growth To Accelerate In Coming Months: Finance Ministry

The Finance Ministry has expressed cautious optimism about India’s economic growth in the coming months, despite a rise in inflation. Its latest monthly economic review, released on Monday, attributes the positive outlook to a favorable monsoon, increased minimum support prices, and adequate agricultural inputs.

Retail inflation surged to 6.21% in October, a 14-month high, primarily driven by food inflation in vegetables like tomatoes, onions, and potatoes, caused by supply disruptions from heavy rains in key producing states.

Agriculture and Inflation Outlook

The report highlights bright agricultural prospects as a mitigating factor for inflation. Early November trends indicate a moderation in food prices, even as geopolitical tensions continue to affect domestic inflation and supply chains.

High-frequency economic indicators, including the Purchasing Managers’ Index and E-way bill generation, rebounded in October after a brief slowdown during the monsoon months. This indicates renewed momentum in rural and urban demand.

Employment and External Sector Dynamics

The formal workforce is expanding, with a rise in manufacturing jobs and increased youth employment in organized sectors. However, the report warns that India’s export recovery may face challenges due to weakening demand in developed markets.

Trade in the services sector remains robust, sustaining momentum despite external headwinds. The Finance Ministry also flagged global risks like the Russia-Ukraine conflict, geopolitical fragility, and policy decisions in the US, which could impact financial markets and capital flows.

India’s food inflation and growth outlook remain closely tied to global and domestic developments, making the next few months critical for economic stability.

Also Read: Sensex Closes Up By 992 Points, Adani Ports, L&T Top gainers

Ajaypal Choudhary

Recent Posts

PM Modi Meets Bhutan PM Tobgay At BIMSTEC Summit; Highlights Strong Bilateral Ties & Regional Cooperation

PM Narendra Modi met Bhutanese PM Tshering Tobgay on the sidelines of the 6th BIMSTEC…

21 mins ago

Jamia Students Back Waqf Amendment Bill; Call It A Step Toward Empowerment

The student group 'Shaher-E-Arzoo' expressed firm support for the Waqf Amendment Bill, calling it a…

3 hours ago

India’s Exports To The US Face Limited Impact From Tariff Hike: SBI Report

The 27% tariff hike by US President Donald Trump on Indian goods will have only…

3 hours ago

Waqf Freed From Mafia Control, New Era Of Development Begins For Muslims: MRM

Following the passage of the Waqf Amendment Bill 2024 in both Houses of Parliament, celebrations…

4 hours ago

India’s Forex Reserves Surge To $665.4 Billion; Rupee Strengthens As Trade Deficit Narrows

India’s forex reserves jumped $6.6 billion to a five-month high of $665.4 billion for the…

5 hours ago

Laxmi Singh Leads Gautam Buddha Nagar Police To Historic No 1 Rank In IGRS Across All Stations

Gautam Buddha Nagar Police, led by CP Laxmi Singh, achieved a historic feat with all…

6 hours ago