Quick Summary
India's economic activity has accelerated on both supply and demand fronts following the recent rationalisation of GST rates, the Finance Ministry said in its Monthly Economic Review for October. The ministry noted that the positive impact of reduced GST rates is becoming increasingly evident across consumption and production indicators, signalling broad-based economic resilience. According to the review, well-anchored inflation expectations, sustained public capital expenditure, rural revival,
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FAQ :
The Finance Ministry review indicates that GST rationalisation has accelerated economic activity on both supply and demand fronts, leading to increased consumption and production.
Key factors include well-anchored inflation expectations, sustained public capital expenditure, a revival in the rural sector, and firm urban consumption.
With easing inflationary pressures due to favourable global commodity prices and domestic measures, the government expects the inflation trajectory to remain favourable, though global uncertainties require vigilance.
The agricultural sector is a key driver of the improved outlook, supported by strong rabi sowing and adequate reservoir levels, which are expected to boost food supply and rural incomes.
Merchandise exports contracted in October, but imports surged, widening the trade deficit. However, services exports reached a record high, helping to offset the dip in goods trade.
Yes, there are early signs of bank credit growth reaccelerating, particularly in personal loans and MSME lending, with a notable surge in loans against gold jewellery.
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