The Finance Ministry in India has released a report that talks about the risks and growth of the economy. The report says that there are risks to growth and inflation that come from outside of the country and also from weather uncertainties. However, the report also says that consumption and investment are growing, which is a good sign for the economy.
The report also mentions that the Indian economy had a strong end to the previous fiscal year. GST collections in April were high due to increased economic activity. The manufacturing and services sectors are doing well, and so is the agriculture sector. The report predicts a good Kharif sowing season starting in June 2023.
The report also notes that inflation has been declining. WPI inflation is now at a 33-month low of -0.9% in April 2023, and CPI inflation has also declined from a peak of 7.8% in April 2022 to an 18-month low of 4.7% in April 2023.
The report concludes by saying that the prospects for the Indian economy are looking good, with healthy prospects for the Kharif season, higher minimum support prices for crops, and increased government spending likely to enhance farmers’ income and boost the rural economy.
