India continues to be the fastest-growing major economy amid positive assessments of the country’s growth outlook for this fiscal by both international organisations and the central bank, the finance ministry recently said.
“Despite the global challenges, India stands out with its strong economic performance, highlighting broad-based growth across sectors and asserting its pivotal role in supporting the global growth trajectory,” the ‘Monthly Economic Review March 2024’ released by the ministry’s economic division said.
March witnessed record-breaking stock market performance and remarkable goods and services tax (GST) collections, it said.
Retail inflation in the country has reached its lowest level since the pandemic, it said. Fiscal 2023-24 closed with a low inflation rate of 4.85 per cent in March—the lowest in the past 10 months, reflecting a stable economic environment.
“In India, the government and the RBI’s efforts to combat inflation, including calibrated policy rates, strengthening food buffers, and easing imports, have ensured effective inflation management,” the report remarked.
“Consumer and investor confidence, as indicated by notable improvements in sentiment, underpin India’s ability to navigate global challenges successfully,” it said.
Global slowdown led to a moderation in India’s merchandise trade. “The slowing of trade has resulted in the merchandise trade deficit narrowing in FY2023-24, as exports have shown a smaller contraction than imports,” it added.