According to early indicators, strong growth in FY24 that exceeded market forecasts is expected to continue in the first quarter of FY25. The growing strength of the economy is attested to by the emerging robust trends in purchasing managers’ indices, vehicle sales, e-way bills, electronic toll collections, GST (goods and services tax) collections, and the quantity and value of digital transactions.
According to the ministry’s study, export controls, open market sales, stock monitoring, and the import of pulses are just a few of the government actions that should help stabilize food prices.
The evaluation by the finance ministry warns that the current geopolitical tensions could push up international commodity prices and disrupt supply chains, even if the projection of a normal monsoon is encouraging for food output and could relieve pressure on food prices.
The Reserve Bank of India has projected a retail inflation rate of 4.9% for the first quarter of FY25, assuming a favourable monsoon.
Numerous factors will influence the course of inflation in the future. The agricultural sector’s promising signs should aid India in fending off any negative influences from geopolitical unrest and rising commodity prices worldwide.
External support for domestic industry is expected to increase in the coming months. The Indian economy’s industrial and service sectors are doing well thanks in part to cautious foreign demand and robust local demand.