Talking about global disinflation, the Ministry pointed out price pressures across economies have abated substantially after peaking towards the end of 2022 on account of central bank policy rate hikes and improved supply chain resilience.
While maintaining a “cautiously optimistic” economic outlook for the coming months for the Indian economy, the Finance Ministry in its monthly economic review for October released Monday stated that agriculture is likely to benefit from favourable monsoon conditions, increased minimum support prices and adequate supply of inputs. The Ministry also underlined that most countries are loosening monetary policy, with a broad consensus that after a successful disinflationary phase, monetary policy will have to be eased to avoid recession.
These comments come in the backdrop of Finance Minister Nirmala Sitharaman stating last week that if Indian industry is to expand and build new capacities, “our bank interest rates will have to be far more affordable”.
