According to a study from the Finance Ministry, India will grow at a "moderately brisk rate."
Business

India to grow at ‘moderately brisk rate’, inflation to ease 2022 report : Finance Ministry

The tightening of US monetary policy is a “future risk,” according to the “Monthly Economic Review for October 2022,” that might cause a decline in stock values, a devaluation of national currencies, and other things. 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.

According to a research released by the finance ministry on Thursday, India is well positioned to develop in the future years at a “moderately brisk rate” despite the tightening of global monetary policy. It further mentioned that the arrival of kharif crops will ease inflationary pressures in the coming months and that job opportunities would increase in unison with an improvement in business prospects.

The “Monthly Economic Review for October 2022” also issued a warning, noting that the tightening of US monetary policy is a “future risk” that could cause stock prices to fall, national currencies to weaken, and bond yields to rise, raising the cost of borrowing for many governments around the world.

The paper claims that a significant decrease in global economic expectations, skyrocketing inflation, and deteriorating financial conditions have spurred mounting concerns about an impending worldwide recession.

India’s potential for its export sector may be harmed by the consequences of the global recession. Persistent domestic demand, a revived investment cycle, a revitalised banking sector, and structural reforms will all contribute to future economic growth.

According to the report, India was in a good position to grow reasonably quickly in the next years “in a world where monetary tightening has impeded development prospects” because of the significance it placed on macroeconomic stability.

The ministry claims that the government has already started addressing India’s issues with food security this year and would continue to do so. In the next months, it was predicted that “relatively reduced global commodity prices and the start of the new kharif” would reduce inflationary pressures.

India’s wholesale and retail price inflation declined in October after maintaining high for the most of the year, partly as a result of supply chain issues brought on by the start of the Russia-Ukraine war in February. While wholesale or WPI inflation was at a 19-month low of 8.39%, retail or CPI inflation dropped to a 3-month low of 6.7%.

If you liked the content, please share, follow and like us: