New Delhi: Noting that high-frequency indicators such as GST collection, E-way bills, and PMI (purchasing managers’ index) continue to show growth momentum, a Finance Ministry report on Friday said that India’s economic outlook for the current financial year remains bright.
“India’s economic outlook for FY24 remains bright. Economic activity maintained its momentum. HFIs (high frequency indicators) suggest that the second quarter of FY24 is shaping up well too,” said the Monthly Economic Review (August 2023) published by the Finance Ministry.
The report said that the prices of selected food items that drove the inflation rate above 7per cent in July 2023 are on the retreat. It further said that the recent run-up in oil prices is an emerging concern but not alarming.
The report highlighted that the private sector is in good health, as shown by data on advance tax payments for the second quarter, and companies are investing.
The Indian economy is expected to grow by 6.5 percent in FY24. The report noted that, as always, there remain some risks to economic performance.
“Crude oil prices are steadily climbing. The monsoon deficit in August could impact both Kharif and Rabi crops. That needs to be assessed,” the report said.
Driven by strong domestic demand for consumption and investment, India’s gross domestic product (GDP) grew at 7.8 percent in the April-June quarter (Q1) of the current financial year.