Home / News / India /  India to grow at ‘moderately brisk rate’, inflation to ease: FinMin report

India's inflation is likely to ease in the coming months, partly due to fall in commodity prices, said finance ministry said in a monthly economic report

The economic report also stated that monetary tightening had weakened growth prospects globally, but India was well-placed to grow at a moderately brisk rate in the coming years.

The finance ministry has also said that a global slowdown may dampen the country's exports businesses outlook.

According to official trade data released earlier this month, India's merchandise trade deficit widened to $26.91 billion in October from $25.71 billion in the previous month.

The 'Monthly Economic Review for October 2022' also cautioned that the US monetary tightening is a "future risk" which could lead to dip in stock prices, weaker currencies and higher bond yields, resulting in higher borrowing costs for many governments around the world.

The report pointed out that though global slowdown may dampen India’s exports businesses outlook but domestic demand and investment will help the economic growth to push forward.

"The spillovers of the global slowdown may dampen India’s exports businesses outlook; however, resilient domestic demand, a re-invigorated investment cycle along with strengthened financial system and structural reforms will provide impetus to economic growth going forward. Easing international commodity prices and new Kharif arrival are set to dampen inflationary pressures in the coming months," the report stated.

With regard to job situation, the ministry said in India the recovery in economic activities across sectors has improved the overall employment situation in the country.

"Hiring by firms is likely to witness an improvement in upcoming quarters driven by a rebound in new business hiring as firms continue to benefit from the lifting of the COVID-19 restrictions and optimism engendered by the vigorous sales volumes experienced during the festive season," the ministry said.

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