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Indian economyÔÇÖs domestic dynamics continue to strengthen, according to a report by the Finance Ministry. The report acknowledges that negative cross-border spillovers and adverse global developments can hinder India’s potential high growth path. However, it states that despite a rise in global uncertainties and moderation in global output, India’s growth momentum is expected to be sustained in the June 2023 quarter. This is reflected in the performance of various high-frequency indicators such as GST collections, PMI, services exports, and e-way bills. The report also highlights the recent increase in food inflation due to weather-related disruptions, emphasizing the need for a cautious approach by the Reserve Bank of India (RBI) and the government.

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