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NEW DELHI:Indian economy is expected to grow at 7% in FY23 despite global headwinds, while retail inflation would moderate in line with wholesale inflation which fell to a 25month low in January, the finance ministry said on Monday.
Supported by gains from high services exports, the moderation in oil prices, and the recent fall in importintensive consumption demand, India’s current account deficit is estimated to fall in FY23 and FY24, providing a buffer to the rupee in uncertain times, the ‘Monthly Economic Review’ by the ministry said.
This will provide a cushion to the external sector at a time when the Fed is likely to raise rates further and ensure that the country’s external finances are not a major cause of concern, it said.
The jump in net service exports over the previous year is a critical development as India increases its market share in both IT and nonIT services, whose demand has been triggered by the pandemic, it said, adding, imports are also less costly now with the easing of global commodity prices.
Supported by gains from high services exports, the moderation in oil prices, and the recent fall in importintensive consumption demand, India’s current account deficit is estimated to fall in FY23 and FY24, providing a buffer to the rupee in uncertain times, the ‘Monthly Economic Review’ by the ministry said.
This will provide a cushion to the external sector at a time when the Fed is likely to raise rates further and ensure that the country’s external finances are not a major cause of concern, it said.
The jump in net service exports over the previous year is a critical development as India increases its market share in both IT and nonIT services, whose demand has been triggered by the pandemic, it said, adding, imports are also less costly now with the easing of global commodity prices.
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