India remains bright spot in global economy revival but Food Inflation Is Big Concern Says Monthly Economic Review | Finance Ministry: India becomes bright in global economy

Monthly Economic Review: The Finance Ministry has released the Monthly Economic Review for March 2024 in which the Ministry said that India remains a bright spot in the recovery of the global economy. The ministry has said that due to strong domestic demand, improvement in rural demand, increase in investment and increasing manufacturing, the Indian economy is witnessing strong growth. However, the ministry said in its report that the rise in food inflation remains a big challenge for the government.

RBI and IMF increased GDP estimates

The Department of Economic Affairs of the Finance Ministry releases Monthly Economic Review every month. According to the report, the Reserve Bank of India and the International Monetary Fund have increased India's growth rate estimates with a positive outlook. In its latest MPC meeting, the Reserve Bank of India has estimated the GDP growth rate to be 7 percent for the financial year 2024-25. According to the report, the stock market has created history in March 2024. BSE Sensex and NSE Nifty have been successful in touching historical highs. So the Goods and Services Collection also remained strong and the growth of Manufacturing and Services sectors has also been excellent which shows the strength of the domestic economy which has benefited the entire Indian economy. Consumer and investor confidence has increased due to improvement in sentiment, which shows India's ability to deal with global challenges.

after covid Dearness at lower level

It was said in the Monthly Economic Review that the retail inflation rate has come down to its lowest level after the Covid epidemic. The government has been successful in controlling retail inflation during the financial year 2023-24. The retail inflation rate which was 6.7 percent in the financial year 2022-23 has come down to 5.4 percent in 2023-24, which is less than the upper level of the tolerance band of RBI. The government's move to control inflation by reducing the prices of petrol, diesel and LPG has had a positive impact.

Ministry of Finance @FinMinIndia releases Monthly Economic Review #MER for March 2024.

For full report ➡️ https://t.co/Ie2XvFjtrz

Key highlights 👇 pic.twitter.com/A2GfDGYUNB

— Ministry of Finance (@FinMinIndia) April 25, 2024

Food inflation becomes a cause for concern

The Finance Ministry said that food inflation in India has come down from 8.7 percent in February 2024 to 8.5 percent in March 2024. Food inflation is being seen in India due to vegetables and pulses. Food inflation remains a challenge for the government. However, the government has controlled food inflation by increasing the buffer stock of essential food items, releasing it in the open market from time to time, simplifying the import of essential food items, continuously imposing stock limits, preventing hoarding, and increasing supply through retail outlets. Tried to tighten it. The Finance Ministry says that the Meteorological Department has predicted more than normal rainfall in this monsoon season and if the distribution of rainfall across the country is better, then there can be a surge in the production of food items, which will help in controlling food inflation. Can be found.

The whole world is troubled by food inflation.

The Finance Ministry said that high food inflation remains a challenge even for the major economies of the world. Germany, Italy, South Africa, France and the United Kingdom are facing high food prices. There is a need to take urgent steps at the global level to deal with high food inflation.

read this also

Dry Promotion: As the appraisal time approaches, the fear of 'dry promotion' is troubling the employees, what is this after all?