Monthly Economic Review instructed to be alert from El Nino and global political situation

Monthly Economic Review: The Department of Economic Affairs, Ministry of Finance has released the Monthly Economic Review for the month of March. In its review, the department said that despite the global economic instability due to the impact of the Corona epidemic and the global-political dispute, 2022-23 has been very spectacular for the Indian economy. The report said that the economy is showing strength and is estimated to grow at a rate of 7 percent, which is higher than the rate of economic growth of other big countries. But in the Monthly Economic Review, instructions have also been given to be cautious about the monsoon.

In its monthly Economic Review, the Finance Ministry has warned of drought conditions due to El Nino and consequent decline in agricultural production and consequent rise in prices, along with instructions to keep vigil on the global-political situation and global financial stability. The effect of these three reasons can be seen in the coming times on growth and inflation.

The report said that there has been an improvement in the current account deficit, which reflects macroeconomic stability. There is a decrease in inflation and despite the increase in policy rates, the banking sector seems to be unaffected by its effect, in such a situation, due to banking, the pace of economic development will continue. According to the report, according to the estimate of WHO, in 2023-24, the Indian economy will grow at the fastest pace. The Economic Survey of 2022-23 and the RBI have projected a GDP growth of 6.5 per cent for the current financial year. World Bank has estimated 6.3 percent and ADB has estimated 6.4 percent.

The Finance Ministry said in its report that the retail inflation rate in March 2023 is at the lowest level after June 2022. This is the effect of fall in wholesale price based inflation rate due to reduction in consumer goods prices. The report said that inflation has come down due to the reduction in commodity prices in the international market, steps taken by the government and RBI’s strict monetary policy. According to the report, households and businesses expect inflation to come down.

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