India's govt, RBI need to step up vigilance on higher inflation expectations, Finance Ministry says

The ministry noted that with a lower trade deficit and a comfortable forex reserves position, India's external account looks robust. Echoing all this, the RBI's forward-looking surveys on manufacturing, consumer confidence, employment and inflation expectations have optimistic findings.

Kolkata, Feb 3 (PTI) The Indian economy is expected to grow at an average rate of 6.7 per cent per annum until the end of the decade, CRISIL said in its latest report. The economy will grow at this rate between the financial years 2024 to 2031, a notch above the pre-pandemic average of 6.6 […]

The Economic Review released by the finance ministry’s department of economic affairs (DEA) said that the government’s emphasis on capital expenditure in recent years has given a much-needed thrust to investments in key infrastructure, resulting in crowding in of private investment to kick-start job creation, income, productivity, demand and exports.

The Department of Economic Affairs released the monthly economic report for January, indicating an expected moderation in food inflation in the coming months. Retail inflation dropped to a three-month low of 5.1% in January 2024. The report highlighted a decline in price indices for vegetables, pulses, and overall food items, suggesting further moderation in food inflation. With core inflation stabilizing and food prices moderating, the outlook for low headline inflation appears promising.

The six-member monetary policy committee voted unanimously to keep the key repo rate, the rate at which it lends to banks, unchanged at 6.5 percent and one member dissented on the monetary stance of focusing on withdrawal of accommodation.

India's economy is likely to see downside risks to growth and upside risks to inflation, partly due to challenges in the country's external sector as well as weather-related uncertainties, the finance ministry said

Indias risk of stagflation, when economic growth stagnates while prices increase rapidly, is low despite prices surging, according to the Reserve Bank of Indias (RBI) August bulletin. A study for the central bank found the probability of stagflation in India was just 3%, due to easing financial conditions, stable INR/USD forex rates and steady domestic fuel prices.

New Delhi [India], January 12 (ANI): Retail inflation in India is unlikely to come down much but is expected to hold at nearly the same level in the January-March 2024 quarter. Once the CPI comes under control for fruits, vegetables, spices, and cereals, headline inflation is expected to drastically reduce to come near the mid-point […]

Georgieva said the focus on reforms in India over the last few years, especially on tax harmonisation, had helped the country become a bright spot. With regard to the global economic situation, things look less bad , Georgieva said in an interview.