Finance Ministry projects stable economic outlook


Photo credit Twitter Ministry of Finance

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By Our Special Correspondent

New Delhi, August 19: Finance Ministry in its monthly review of the state of economy has said that the economic outlook of the country is better placed than two months ago.

In the monthly review, the Finance Ministry has drawn comforts from the return of the foreign portfolio investment in the Indian capital market, which has so far pumped over USD two billion since July this year.

The return of the FPI is after over 16 months of uninterrupted selling in the Indian capital market during which they had sold equities of over USD 30 billion.

The Rupee too is no more under the stress, after recouping from the 80 level against the USD on the back of the improved foreign fund inflow.

“For now, India looks better placed on the growth-inflation-external balance triangle for 2022-23 than it did two months ago,” said the Ministry of Finance in its monthly review for the month of July this year.

While the global gloom on economy persists, with inflation not yet tiring out, the Finance Ministry has pinned hope in the spike of the rural demand on the back of better South-west Monsoon and improved Kharif sowings.

“Global investor confidence in India’s economic landscape is further endorsed by the net FDI inflows remaining robust at USD 13.6 billion in the first quarter of 2022-23, as compared to USD 11.6 billion in the first quarter of the last fiscal,” added the Ministry of Finance in its review.

The Ministry of Finance has further drawn confidence from the healthy balance sheets of the corporates as they have reported strong quarterly earnings, while India’s PMI for manufacturing in July touched an eight month high.

The Indian manufacturing sector should be benefiting from the disruptions in the Chinese economy on account of the ‘Zero Covid Policy’, which continues to be enforced in a number of industrial cities there.

The monthly review by the Finance Ministry has also drawn confidence from the fact that the inflation is now in the projected territory after the food prices cooled down on the back of moderation in the edible oil prices.

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