New Delhi, Apr 26 (KNN) India's economic performance remains robust, underpinned by resilient growth, stable prices, and steady external sector performance, according to the latest monthly economic report released by the finance ministry on Thursday.

Despite ongoing geopolitical tensions, particularly in West Asia, the report notes softened risk perceptions, offering potential growth opportunities.

The global economic landscape is witnessing a gradual resurgence, characterised by diminishing recession fears and a rebound in growth across major economies. However, regional growth disparities persist.

India's economic strength persists amidst global uncertainties, driven by factors such as robust domestic demand, strong investment, and sustained manufacturing momentum, as highlighted in the ministry's report.

“India stands out amidst global challenges, showcasing strong economic performance across sectors and reaffirming its pivotal role in supporting global growth,” the report states, emphasising India's position as the world's fastest-growing major economy.

The report also delves into specific aspects of India's economic landscape. It notes the positive outlook for agricultural productivity, buoyed by the forecast of above-normal rainfall during the upcoming monsoon season.

This is expected to alleviate inflationary pressures, particularly in food prices. Additionally, the report highlights a downward trend in retail inflation, reaching 5.4 per cent in FY24, the lowest level since the onset of the pandemic.

March witnessed remarkable performance across various economic sectors in India. Record-breaking stock market performance, robust goods and services tax (GST) collections, and substantial growth in manufacturing and services sectors reflect a buoyant domestic economic environment.

In terms of the external sector, the report acknowledges the challenges posed by slowing global trade but expresses optimism regarding India's trade deficit, which is expected to narrow in the coming years.

This optimism is attributed to the extension of production-linked incentive schemes to additional sectors. Moreover, recent trade agreements, such as the India-EFTA Trade and Economic Partnership Agreement (TEPA), signal India's commitment to expanding its global trade footprint.

The report also touches upon debt sustainability, noting marginal improvements in the external debt-to-GDP ratio and a moderation in the share of short-term debt, reflecting a positive trajectory in India's external financial position.

For more information, visit: https://dea.gov.in/sites/default/files/Monthly%20Economic%20Review_March%202024.pdf

(KNN Bureau)