Finance ministry: India's growth, price stability stand out

NEW DELHI: Resilient growth, robust economic activity indicators, price stability, and steady external sector performance continue to support the country's promising economic show amid uncertain global conditions, the finance ministry's monthly economic report said on Thursday.
The report said that despite global challenges, India stands out with its strong economic performance, highlighting broad-based growth across sectors and asserting its pivotal role in supporting the global growth trajectory.
It said that global economic growth recovery is underway in major economies, although disparities persist and pointed to some of the risks still lurking. "While the leading indicators signal increased economic activity and geopolitical tensions have eased slightly, recent conflicts continue to pose risks," said the report.
It said that govt and RBI's efforts to combat price rise, including calibrated policy rates, strengthening food buffers, and easing imports, have ensured effective inflation management.
"Consequently, retail inflation in FY2023-24 witnessed a significant decline, reaching its lowest level since the Covid-19 pandemic, with core inflation dropping to 3.3% in March 2024. Further, a predicted above-normal monsoon in 2024 bodes well for a good harvest, easing inflation concerns," said the report for March prepared by the department of economic affairs.
It cautioned that global inflation remains contained overall and has declined in most regions, but the recent uptick in inflationary pressures across nations along with persistence in core inflation warrants attention. Core inflation refers to inflation minus food and fuel.