India’s economy: India will experience a modestly brisk growth rate supported by persistent domestic demand, a rebound of the investment cycle, a strengthened financial sector, and structural reforms even as the outlook for the rest of the world worsens.
India will continue to grow at a “moderately brisk rate” despite the global monetary tightening, according to the finance ministry’s Monthly Economic Review for October, which was released on Thursday.
The finance ministry also stated that the advent of Kharif crops will relieve inflationary pressures in the upcoming months, and that job chances will also rise along with better economic prospects. However, it did point out that a sharp decline in expectations for global growth, soaring inflation, and deteriorating financial circumstances have raised concerns about a coming worldwide recession.
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.”
According to the finance ministry, the US monetary tightening is a “future risk” since it could result in lower stock prices, weaker currencies, and higher bond yields, all of which would raise borrowing costs for many nations.
The “Monthly Economic Review for October 2022” published by the finance ministry stated that while the effects of the global slowdown may dim India’s export business prospects, our growth will be supported by steadfast domestic demand, a resurgent investment cycle, a strengthened financial system, and structural reforms.
The report stated that due to the importance it gave to macroeconomic stability, India appeared well-positioned to grow at a fairly brisk rate in the next years “in a world where monetary tightening has hampered growth prospects.”
Concerns over the nation’s food security have, according to the ministry, already been addressed this year. The ministry reaffirmed that the government will continue to give the issues the highest attention possible.
According to the ministry, India’s overall employment situation has improved as a result of the recovery in economic activity across all sectors. In September 2022, net payroll additions at EPFO experienced double-digit growth, which is indicative of improved economic formalization.
According to the ministry, “hiring by firms is likely to witness an improvement in the coming quarters driven by a rebound in new business hiring as firms continue to benefit from the lifting of the Covid-19 restrictions and optimism engendered by the vigorous sales volumes experienced during the holiday season.”
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