NEW DELHI: The authorities is comfy with its estimate of 6.5% progress for 2023-24 but the current surge in international crude oil prices is a concern though not alarming but, the finance ministry‘s month-to-month financial report for August stated on Thursday.
“As always, risks remain. Crude oil prices are steadily climbing. The monsoon deficit in August could impact both Kharif and Rabi crops. That needs to be assessed. However, it is heartening that rains in September have erased a portion of the rainfall deficit at the end of August,” stated the report.
“A stock market correction, in the wake of an overdue global stock market correction, is an ever-present risk. Offsetting these risks are the bright spots of corporate profitability, private sector capital formation, bank credit growth and activity in the construction sector,” it stated.
The report stated that India’s financial outlook for FY24 stays vivid and financial exercise maintained its momentum. It additional stated that top frequency indicators counsel that the second quarter of FY24 is shaping up properly too. The monsoon deficit of August has been partially plugged in September and that’s excellent news.
“Prices of selected food items that drove the inflation rate above 7% in July are on the retreat. Private sector is in good health as data on advance tax payments for the second quarter confirm. They are investing,” the report stated.
The report stated the dangers of a inventory market correction and geopolitical developments might probably damage funding sentiment within the second half of the monetary yr. “But, the impact of these developments on underlying economic activity in India should be relatively contained,” stated the report ready by the division of financial affairs.
It stated the structural reforms undertaken for selling ease of doing enterprise, logistical effectivity, and infrastructure creation are accelerating job creation and formalisation of the economic system. “The issues that unorganised workers face resulted in the creation of a comprehensive database of e-Shram Portal (with more than 29 crore registrations) and a host of customised social security schemes,” the report added.
“As always, risks remain. Crude oil prices are steadily climbing. The monsoon deficit in August could impact both Kharif and Rabi crops. That needs to be assessed. However, it is heartening that rains in September have erased a portion of the rainfall deficit at the end of August,” stated the report.
“A stock market correction, in the wake of an overdue global stock market correction, is an ever-present risk. Offsetting these risks are the bright spots of corporate profitability, private sector capital formation, bank credit growth and activity in the construction sector,” it stated.
The report stated that India’s financial outlook for FY24 stays vivid and financial exercise maintained its momentum. It additional stated that top frequency indicators counsel that the second quarter of FY24 is shaping up properly too. The monsoon deficit of August has been partially plugged in September and that’s excellent news.
“Prices of selected food items that drove the inflation rate above 7% in July are on the retreat. Private sector is in good health as data on advance tax payments for the second quarter confirm. They are investing,” the report stated.
The report stated the dangers of a inventory market correction and geopolitical developments might probably damage funding sentiment within the second half of the monetary yr. “But, the impact of these developments on underlying economic activity in India should be relatively contained,” stated the report ready by the division of financial affairs.
It stated the structural reforms undertaken for selling ease of doing enterprise, logistical effectivity, and infrastructure creation are accelerating job creation and formalisation of the economic system. “The issues that unorganised workers face resulted in the creation of a comprehensive database of e-Shram Portal (with more than 29 crore registrations) and a host of customised social security schemes,” the report added.
