New Delhi: India’s Finance Ministry has sounded a note of caution on India’s economic growth in its monthly review for the month of October. It said that America’s growth rate has been faster than expected, but Europe’s structural weakness and China’s economy have been slow, while on the other hand, Ukraine and Gaza war have disturbed the global situation. It is also affecting the global economy, which is having a serious impact on the Indian economy. However, the Indian economy remains stable, and the shock to its growth rate during the monsoon has now been overcome. There has been continuous progress in this since October. Sales of Fast Moving Consumer Goods (FMCG) have also increased in cities and villages. Sales of tractors have increased and sales of two-wheelers have also increased. So both manufacturing and service sectors are happy. The trend of purchasing managers’ index has also been positive.
However, the report further notes that currency deflation (inflation) has been a concern. SPECIAL: Heavy rains and subsequent downpours have disrupted food chains. The prices of tomato, potato and onion have also increased. On the other hand, oil prices have also increased at the global level. Therefore our economy is also under pressure. However, the Finance Ministry report said that food prices are expected to decline in the coming months. It has been said that due to good rains across the country, not only the Kharif crop has been good, but the Ravi crop (winter crop) is also expected to be good.
However, the report warns of an increase in imports and resulting commercial food shortages.
Also pointing towards the current situation of China, the report says that foreign reserves have increased by $64.8 billion in 2024 because FDI from there has shifted to India.
The report on the labor market said that mixed trends have been seen in it. 2.2 million more jobs than pre-pandemic levels. But the trend of urban users now raises doubts about greater opportunities.
The report further said that our economy is strong, but there is a need to be cautious about global uncertainties.
