29 Apr Robust GST Collection & Low Inflation Underline India’s Economy Resilient Despite Global Risks: Finance Ministry Report
Introduction: India’s Economic Resilience
India’s economic resilience shines through despite global risks, as highlighted in the latest monthly economic report from the finance ministry. Robust GST collection and low inflation underscore the nation’s stable economic performance, even amidst geopolitical tensions and regional disparities.
Key Highlights of the Report
- Global Economic Landscape
The report acknowledges the global resurgence marked by diminishing recession fears and a rebound in growth across major economies. Despite ongoing geopolitical tensions, softened risk perceptions present growth opportunities for India.
- Domestic Economic Strength
India’s economic strength is attributed to robust domestic demand, strong investment, and sustained manufacturing momentum. The nation stands out amidst global challenges, reaffirming its position as the world’s fastest-growing major economy.
- Positive Outlook for Agricultural Productivity
The report forecasts above-normal rainfall during the upcoming monsoon season, bolstering the outlook for agricultural productivity. This is expected to alleviate inflationary pressures, particularly in food prices.
- Decline in Retail Inflation
Retail inflation witnessed a downward trend, reaching 5.4 per cent in FY24, the lowest level since the onset of the pandemic. This decline in inflation reflects the resilience of India’s economy amidst global uncertainties.
- March Economic Performance
March saw remarkable performance across various sectors, including record-breaking stock market performance, robust GST collections, and substantial growth in manufacturing and services sectors, reflecting a buoyant domestic economic environment.
- Optimism in External Trade
Despite challenges posed by slowing global trade, the report expresses optimism regarding India’s trade deficit, expected to narrow in the coming years. Recent trade agreements signal India’s commitment to expanding its global trade footprint.
- Debt Sustainability
Marginal improvements in the external debt-to-GDP ratio and a moderation in the share of short-term debt reflect a positive trajectory in India’s external financial position, enhancing debt sustainability.
Conclusion
India’s economy remains resilient amidst global risks, buoyed by robust GST collection, low inflation, and steady economic performance across sectors. The finance ministry report underscores the nation’s ability to navigate challenges and sustain growth momentum, positioning India as a key player in the global economic landscape.
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