<p>Bengaluru: The Union Finance Ministry said on Friday that the ongoing geo-political upheavals and the resultant volatility in prices of commodities globally, continues to be a cause of concern on the economic front, but added that there are enough macro-economic buffers to navigate these challenges.</p>.<p>“The unrelenting geopolitical tensions and volatility in global commodity prices, especially of petroleum products, present substantial multi-frontal challenges,” the ministry said in its latest Monthly Economic Review (MER), for the month of April 2024.</p>.<p>Nonetheless, the expectation is that the macro-economic buffers nurtured and strengthened during the post-Covid management of the economy will help the India navigate these challenges reasonably smoothly, the MER stated.</p>.<p>India’s retail inflation for April declined to a 10-month low of 4.83%, the second consecutive month below the 5% level. This was primarily due to easing of core inflation, even as food prices remained elevated.</p>.<p>There has been a continued decline in retail inflation since December 2023. It has been within the Reserve Bank of India’s (RBI) tolerance range of 2-6 per cent for the seventh month in a row. However, it has been above the central bank’s medium-term target of 4 per cent for 54 consecutive months.</p>.<p>Primarily due to the ongoing conflict in the Middle-East, prices of the benchmark Brent crude have risen more than 6 per cent year-to date.</p>.<p>On Wednesday, the MER stated that as per all available high-frequency data, the strong performance of the Indian economy in 2023-24 has carried onto the current April-June quarter (Q1 of 2024-25).</p>.<p>“The Indian economy closed FY24 strongly with its growth surpassing market expectations, despite strong external headwinds. Early indications suggest a continuation of the economic momentum during the first quarter of FY25,” it stated. </p>.<p>It said that industrial activity is gaining momentum and fixed investment is gathering pace on the back of the focus the government’s capital spending. “The forward-looking surveys of the Reserve Bank also indicate improving consumer confidence and industrial outlook,” the report said.</p>
<p>Bengaluru: The Union Finance Ministry said on Friday that the ongoing geo-political upheavals and the resultant volatility in prices of commodities globally, continues to be a cause of concern on the economic front, but added that there are enough macro-economic buffers to navigate these challenges.</p>.<p>“The unrelenting geopolitical tensions and volatility in global commodity prices, especially of petroleum products, present substantial multi-frontal challenges,” the ministry said in its latest Monthly Economic Review (MER), for the month of April 2024.</p>.<p>Nonetheless, the expectation is that the macro-economic buffers nurtured and strengthened during the post-Covid management of the economy will help the India navigate these challenges reasonably smoothly, the MER stated.</p>.<p>India’s retail inflation for April declined to a 10-month low of 4.83%, the second consecutive month below the 5% level. This was primarily due to easing of core inflation, even as food prices remained elevated.</p>.<p>There has been a continued decline in retail inflation since December 2023. It has been within the Reserve Bank of India’s (RBI) tolerance range of 2-6 per cent for the seventh month in a row. However, it has been above the central bank’s medium-term target of 4 per cent for 54 consecutive months.</p>.<p>Primarily due to the ongoing conflict in the Middle-East, prices of the benchmark Brent crude have risen more than 6 per cent year-to date.</p>.<p>On Wednesday, the MER stated that as per all available high-frequency data, the strong performance of the Indian economy in 2023-24 has carried onto the current April-June quarter (Q1 of 2024-25).</p>.<p>“The Indian economy closed FY24 strongly with its growth surpassing market expectations, despite strong external headwinds. Early indications suggest a continuation of the economic momentum during the first quarter of FY25,” it stated. </p>.<p>It said that industrial activity is gaining momentum and fixed investment is gathering pace on the back of the focus the government’s capital spending. “The forward-looking surveys of the Reserve Bank also indicate improving consumer confidence and industrial outlook,” the report said.</p>