Staff Reporter
India’s economic outlook is cautiously optimistic, with agriculture expected to benefit from favourable monsoon conditions, higher minimum support prices, and adequate input supply.
According to the finance ministry’s October review, inflation is projected to align with central bank targets, influenced by price trends in edible oils, tomatoes, onions, and potatoes. Food inflation is also expected to ease due to the likely bumper kharif harvest.
The review highlighted India’s economic resilience in October, with steady demand growth and strong manufacturing and service sector activity. Employment is also expanding, with increases in manufacturing jobs and youth entering organized sectors. The finance ministry noted that concerns about slowing earnings, high valuations, geopolitical tensions, and developments in China led Foreign Portfolio Investors to withdraw funds from Indian equities in October. It also pointed to continued upward pressure on the trade deficit, driven by faster import growth, and rising commodity prices, particularly for industrial inputs and metals, contributing to imported inflation and a higher import bill.