Indian Economic Update: India will remain the world’s fastest growing major economy in the current financial year (2023-24) amid strong domestic fundamentals and expectations of moderation in inflation.
Indian Economic Update: Good economic growth is being seen in the Indian economy. India will remain the world’s fastest growing major economy in the current financial year (2023-24) amid strong domestic fundamentals and expectations of moderation in inflation. This information has been given in a report released by the Finance Ministry on Monday.
The Finance Ministry’s monthly economic review for September said that recent developments in the Persian Gulf have increased global uncertainties. These developments may lead to further rise in the price of crude oil.
The effect of American monetary policy will be visible
Apart from this, due to strict monetary policy in America and very high supply of American securities, the financial situation may become ‘tight’.
American markets continue to decline
According to the report, at the current level the risk of a fall in the American stock markets is high and if this happens, it will affect other markets in the world as well. However, the report emphasizes that India’s macroeconomic outlook for the current financial year is bright and is based on strong domestic fundamentals. Along with private consumption, investment demand is also strengthening.
Inflation remained constant
The report says that industrial capacity utilization in India has improved and the property market also appears to be in good shape. The report said that the improvement in the reservoir level is a good sign for the upcoming Rabi season. Core inflation has been steadily declining while food inflation has moderated.
India’s economy will grow fastest in 2023-23
The report said that International Monetary Fund (IMF) projections also confirm that India will remain the world’s fastest growing major economy in 2023-24. In October, the IMF has increased the growth rate estimate for India by 0.2 percent to 6.3 percent while maintaining the global growth estimate for the financial year 2023-24 at three percent.
Finance Ministry issued statement
The Finance Ministry said that this reflects the growing confidence of global analysts in India’s economic strength amid global uncertainties and fresh geopolitical challenges.