Indian economy to grow at 7%; inflation set to moderate: Finance Ministry
Live MintNew Delhi: Indian economy is expected to grow at 7 per cent in FY23 despite global headwinds while retail inflation would moderate in line with wholesale inflation which fell to a 25-month low in January, the Finance Ministry said on Monday. Supported by the gains from high services exports, the moderation in oil prices, and the recent fall in import-intensive consumption demand, India’s current account deficit is estimated to fall in FY23 and FY24, providing a buffer to the rupee in uncertain times, Monthly Economic Review by the ministry said. Noting that falling international commodity prices and government measures have aided in easing inflationary pressures, the report said, inflationary pressures eased in February, with a slight moderation in CPI inflation and WPI inflation softening to a 25-month low. Forecasts by various international agencies show that inflation in India will moderate in FY24 compared to FY23 and is likely to remain in the range of 5-6 per cent, with risks evenly balanced, it said.