The rupee depreciated 5.4% against the US dollar, less than 8.9% of the 6 major currencies: Ministry of Finance economic review for September
He further highlighted the Centre’s efforts in managing inflation saying, “Proactive measures including reductions in excise and import duties, collection of export duties and restrictions, and build-up of buffer stocks, have helped to limit inflation on the supply side”.
Here are some highlights from the September Economic Review:
– India’s real economic growth in 2022-23 is expected to be 6.8%, the second highest in the G20. At 6.1% for 2023-2024, it will be the highest in the G-20. Global energy prices and supplies remain sources of concern. Geopolitical conflicts could further intensify supply chain pressures that have eased recently.
– The first half of FY23 saw fewer growth and stability issues compared to the world as a whole. As measured by the composite PMI, the level of economic activity was higher for India at 56.7 compared to 51.0 for the world from April to September 2022.
– Retail price inflation in India over the past six months stood at 7.2%, less than global inflation of 8.0%, represented by the median inflation of major economies. It remained stable throughout the April-September period at nearly 7%, the statement said.
– Wholesale inflation has fallen to 12.4% and retail inflation is a notch above 7% in the second quarter of FY2022-23. The gap between wholesale inflation and retail inflation has narrowed, indicating that the magnitude of the pass-through from input costs to retail inflation affecting consumers is likely to be smaller in the future. coming.
– RBI repo rate hikes and lower global commodity prices helped contain inflation. In addition, government measures, including reductions in excise and import duties, collection of export duties and restrictions, and buffer stocks, have helped to contain inflation on the side of the offer. Barring further extreme weather conditions, retail food price inflation is expected to decline over the coming months, leading to lower headline retail price inflation.
– The growth story in the first half of FY23 highlighted the continued push the government has given to its capital spending. Rising levels of capital spending were also supported by stronger revenue generation following improved tax compliance, increased corporate profitability and growing economic activity.
– PMI Manufacturing remained in the expansion zone in September 2022. Expansion was driven by new business growth, resilient demand and expanding operational capacity. In addition, business confidence also improved as input cost inflation fell to its lowest level in 23 months due to lower industrial metal prices, leading to higher corporate sector profits. private.
– Foreign direct investment (FDI) inflows from April to July reached $18.8 billion, compared to $13.1 billion in 2021-22. Despite Fed rate hikes, FDI outflows declined in the first half of FY23 compared to the previous half (H2 of FY22) as foreign portfolio investors became net buyers in second quarter of fiscal year 2022-23 with a net investment of $3.3 billion.