Indian Economy: Despite global challenges, the country’s economic growth rate is estimated to be seven percent in the current financial year 2022-23. At the same time, retail inflation will soften in line with wholesale inflation. This has been estimated in the monthly economic review released by the Finance Ministry on Monday. It also said that the country’s current account deficit (CAD) is expected to narrow in fiscals 2022-23 and 2023-24, with gains from higher service exports, softening oil prices and a recent slowdown in import-intensive consumption demand. Have an estimate. This will support the rupee in times of uncertainty. It said that this would provide much-needed relief on the country’s external sector front at a time when the US central bank, the Federal Reserve, is likely to hike policy rates further. The jump in net service exports over the past year is significant, as India gains market share in information technology and other services sectors.
Information revealed in the report of the Ministry of Finance
The softening of global commodity prices has also made imports a bit cheaper. With a manageable current account deficit and higher growth than major economies, the Indian economy has shown a renewed resilience to the crisis triggered by the pandemic and political tensions globally, according to a Finance Ministry report. Macroeconomic stability will further strengthen in FY 2022-23. This is because the current account deficit is expected to be lower than estimated at the beginning of the year. In the context of economic growth, the report said that the GDP (Gross Domestic Product) growth rate estimate for the third quarter of 2022-23 confirms the Indian economy’s ability to grow on the basis of domestic demand. However, on the other hand, global production has slowed down due to increased global uncertainty. The country’s economic growth rate stood at 4.4 percent in the October-December 2022 quarter. The growth momentum gained in Q3 is expected to be sustained in Q4.
Updates received from GST collection
This is reflected in the important data (GST collection, power consumption, PMI etc.) for January and February. GST collection remained above Rs 1.4 lakh crore in February 2023 for the 12th consecutive month. According to the report, fall in international commodity prices and government measures have eased inflationary pressure. Inflationary pressure eased in February. While retail inflation moderated marginally, wholesale inflation eased to a 25-month low. Wholesale inflation has come down to a 25-month low, its positive impact will be seen on retail inflation. It may be noted that retail inflation came down to 6.44 per cent in February from 6.52 per cent in January. At the same time, the wholesale inflation came down to 3.85 percent, which was 4.73 percent in January.
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