Economic outlook bright but high oil prices a concern: FinMin
New Delhi: India's economic outlook for FY24 remains bright, with economic activity maintaining its momentum and food prices cooling down. However, rising oil prices remain a concern, the finance ministry said in its monthly economic review for August. Oil prices rose to 10-month highs earlier this week on extended production cuts from key suppliers.
As of Friday, oil prices stood at $94.85 per barrel, up 6.1% annually. "Recent run-up in oil prices is an emerging concern. But, no alarms yet," the government's monthly economic report said.
India, which depends on international markets for most of its energy needs, is the world's third-largest energy importer. Overall, the government expects economic activity to maintain momentum and private sector investments to pick up going ahead. "Private sector is in good health as data on advance tax payments for second quarter confirm," the survey said.
“Therefore, in sum, the baseline estimate for India’s economic growth in FY24 is 6.5 per cent, at 2011-12 prices." The latest economic review pointed out that the risks of a stock market correction and geopolitical developments could potentially hurt investment sentiment in the second half of the financial year. However, it said that the impact of these developments on underlying economic activity should be relatively contained. The economic review stated that inflation eased in August, with government's intervention helping bring down prices of certain items.
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