The biggest threats to India’s economic growth would likely come from forces outside the country, Finance Minister Nirmala Sitharaman said, citing the risk of higher oil prices and the impacts from Russia’s war in Ukraine.
She also said possible recessions in the US or other developed countries could be a drag on India by hurting exports, particularly manufacturing.
India’s $3.2 trillion economy is showing signs of fatigue as domestic and foreign demand gets clipped by high interest rates. Growth in the October-December period eased to 4.4%, from 6.3% in the previous quarter, due to waning consumption and investments.
“The buoyancy of the economy will continue,” she said, crediting part of that to policy reforms in recent years and digitization.
Sitharaman said some countries can begin to “somewhat decouple” from the Federal Reserve, which has led the global drive to hike interest rates to curb inflation. A pause in tightening “can help growth momentum” in certain countries, which can respond to their economic challenges “with a bit more sense of what is most suitable for them.”
India’s inflation is easing, with consumer prices rising 5.66% in March from a year earlier, the slowest pace in 15 months as growth in food costs moderated. The nation’s weather office has forecast a normal monsoon, which could lower grain and oilseed prices and slow inflation.
Stay connected with us on social media platform for instant update click here to join our Twitter, & Facebook
We are now on Telegram. Click here to join our channel (@TechiUpdate) and stay updated with the latest Technology headlines.
For all the latest Business News Click Here
For the latest news and updates, follow us on Google News.