This article is from November 22, 2023
NEW DELHI: India's growth experience in 2023-2024 will continue to be a positive outlier compared to other major economies, and the country will continue to grow faster than in the past, depending on global factors. The country can look ahead to the long-term economic and financial cycle, the Ministry of Finance's October monthly economic report said.
“More than half of the year has seen positive developments in the economy, and the full year is expected to end with strong growth performance and macroeconomic stability,” the report prepared by the Ministry of Economy said.
However, he warned that downside risks still exist. Inflation is one thing that both governments and central banks remain on high alert. External sector financial flows also affect the value of the rupee and the balance of payments and require continuous monitoring. The report said more complete transmission of monetary policy could also dampen domestic demand.
The report said a rapid reversal in US interest rate hike expectations and a fall in US 10-year Treasury yields, coupled with lower oil prices, is good news for emerging markets generally, including India. On the inflation front, he added that the decline in global oil prices and the continuation of moderate core inflation are likely to suppress future inflationary pressures.
“More than half of the year has seen positive developments in the economy, and the full year is expected to end with strong growth performance and macroeconomic stability,” the report prepared by the Ministry of Economy said.
Expanding
However, he warned that downside risks still exist. Inflation is one thing that both governments and central banks remain on high alert. External sector financial flows also affect the value of the rupee and the balance of payments and require continuous monitoring. The report said more complete transmission of monetary policy could also dampen domestic demand.
The report said a rapid reversal in US interest rate hike expectations and a fall in US 10-year Treasury yields, coupled with lower oil prices, is good news for emerging markets generally, including India. On the inflation front, he added that the decline in global oil prices and the continuation of moderate core inflation are likely to suppress future inflationary pressures.
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