The report of the Ministry of Finance has also warned that America’s strict monetary policy is a risk of the future. Due to this, there may be a fall in the stock market, weakness in currency exchange rates.
Inflation pressure will reduce soon
The Indian economy is well positioned to grow at a moderate to high pace in the coming years due to macroeconomic stability despite an aggressive stance on rate hikes by central banks across the globe. Finance Ministry This has been said in the report released on Thursday. It has also been said in the report that with the arrival of Kharif crop, inflationary pressure will reduce in the coming months and along with improving business prospects, employment opportunities will also increase. At the same time, in the monthly economic review report of the ministry for October 2022, it has also been warned that America’s strict monetary policy is a future risk. This can lead to a fall in the stock market, weakness in currency exchange rates and higher yields on bonds.
Fear of recession due to inflation
The report said that a sharp decline in global economic growth estimates, high inflation and deteriorating financial conditions have raised fears of a global recession. Also, global recession may have an indirect impact on India’s export business. . However, structural reforms coupled with resilient domestic demand, a strong financial system and a reviving investment cycle will help propel economic growth.
The report said, while tight monetary policy in the world has weakened the economic growth forecast, on the other hand the Indian economy appears to be well positioned to grow at a moderate pace in the coming years due to macroeconomic stability.
Inflation rate will decrease with new crop
The ministry said that so far in the current financial year, the government has addressed the food security concerns of the country and the government is paying priority attention to it. According to the report, easing international commodity prices and arrival of new kharif crop will also help ease inflationary pressures in the coming months. Mainly due to supply chain disruptions following the Russia-Ukraine war in February this year Due to this, wholesale and retail inflation in the country remained at a high level for most of the year. However, it has decreased in October. It is noteworthy that Russia and Ukraine are among the most important producers of essential agricultural commodities. It also includes raw materials like wheat, maize, sunflower seeds and fertilizers.