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Since the Corona pandemic, the global economy is facing constant challenges. India is no exception, even though it has fared better than the rest. Still the challenges of India along with the world on the economic front have not ended. On the domestic front, while many factors are going to support growth, on the other hand some external factors are creating risks.
Challenges may come forward
Finance Ministry on Monday Monthly Economic Review Report of the month released. In the report, the ministry discussed about the scenario for the coming days for the economy. The ministry said that in view of the challenges at the global level and uncertainties at the weather level, there is a risk of falling economic growth and rising inflation. Regarding the risk that may be faced by the economic growth, it has been said in the report that the uncertainty of the weather and external factors can cause damage. Due to this, inflation may increase, while the rate of economic growth may decline.
Estimates for the whole year too early
The ministry has said in the report that in April the economic growth of the whole year It is too early to say anything about the result. However, it is off to a good start. For the Indian economy, 2023-24 has started with the strong activities of the last quarter of the last financial year. The figure of collection of Goods and Services Tax i.e. GST has increased in April. The data shows that the tax net has also increased and economic activity has also increased.
Supported by these economic data
Index of industrial production ie IIP and eight basic industries Production has increased in the fourth quarter of the financial year 2022-23. Earlier, the capacity utilization was around 75 per cent in two quarters. Due to continuous growth in economic activities and increase in capacity utilization, companies have started investing in new capacity building. The growth in the construction/infrastructure goods sector, along with the production of capital goods, has continued in Q4 of 2022-23. Prospects remain good in the agriculture sector, as in the manufacturing and service sectors.
Good conditions for kharif crops
As per reports, normal monsoon is expected, reservoirs Greater availability of water, better availability of seeds and fertilizers and good tractor sales indicate better living conditions for the Kharif sowing season. Despite unseasonal rains, government procurement of wheat remains strong in terms of food security. The demand is also increasing in the villages. This is reflected in the strong sales of daily use goods companies in the fourth quarter of 2022-23 and the continuous growth of two-wheelers and three-wheelers in the month of April by more than 10 percent.
Growing rural Economy
Finance Ministry expects better prospects of kharif season, higher minimum support prices for crops and increase in government’s budgetary spending to increase farmers’ income, which will ultimately boost rural economy Will get strength. Despite stiff competition from other countries, the global presence of textiles and ready-made garments is improving due to the production-based incentive scheme, says a finance ministry report on exports.
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