Thu Sep 26 14:53:52 UTC 2024: ## India’s Economic Outlook Brightens as Inflation Remains Under Control: Finance Ministry
**New Delhi, October 4, 2024** – The Indian economy is on a steady growth path, with inflation remaining under control, according to a recent report by the Finance Ministry. The Ministry’s Monthly Economic Review (MER) expressed optimism about the retail inflation outlook, noting that it stood at 3.7% in August, with core inflation at 3.4%. The report attributed this positive trend to a combination of factors, including a good monsoon, healthy Kharif crop sowing progress, and a decline in food prices.
The MER highlighted the government’s efforts to stabilize food prices, including the lifting of export restrictions on onions and basmati rice, and the reduction of stockholding limits on wheat traders. This has contributed to a steady supply of essential commodities, keeping inflation in check.
Despite a slight slowdown in economic growth during the April-June quarter, the MER anticipates steady growth in the remaining quarters of FY25. The report pointed to strong performance in key non-agricultural sectors, with growth exceeding 5% in the first quarter. Furthermore, the report noted an uptick in private consumption, fixed investment, and exports, indicating a robust economic activity.
The MER acknowledged the potential challenges arising from global economic uncertainties, including the possibility of a recession in advanced economies and ongoing geopolitical conflicts. However, the report highlighted India’s strong macroeconomic foundations, characterized by steady growth, investment, employment, and inflation trends, a stable financial sector, and a resilient external account.
Overall, the Finance Ministry’s assessment points to a positive economic outlook for India, with inflation under control and growth expected to remain steady. The report’s optimism underscores the government’s confidence in the Indian economy’s resilience and ability to navigate global uncertainties.
First Piper 