The near-term outlook for Indian economy is one of ‘cautious resilience’, and navigating FY27 will require agility across monetary, fiscal and structural dimensions to safeguard growth momentum and keep inflation durably anchored, the finance ministry said in its Monthly Economic Review report for May.
Strong services exports, adequate foreign exchange reserves and a stable labour market provide a firm foundation (to the economy). However, the confluence of elevated global energy prices, a depreciating rupee, rising upstream cost pressures and the prospect of a below-normal monsoon calls for sustained policy vigilance,” the report said.
The report added that the inflation outlook warrants vigilance. “The current divergence between retail inflation and wholesale prices signals that upstream co…
The near-term outlook for Indian economy is one of ‘cautious resilience’, and navigating FY27 will require agility across monetary, fiscal and structural dimensions to safeguard growth momentum and keep inflation durably anchored, the finance ministry said in its Monthly Economic Review report for May.
Moreover, a deficient monsoon could add food price pressures on top of energy-driven ones. “However, second-round effects and their persistence must be evident in the data for policy responses to be triggered.”
