NEW DELHI: In the latest update from the Finance Ministry, it was revealed that the domestic manufacturing output witnessed improvement in the June quarter. This positive development was attributed to the decline in input prices and robust internal demand. However, the report also sounded a word of caution regarding the recent surge in food inflation, signaling the need for a cautious approach from the government and the Reserve Bank of India (RBI).
"The prices of fruits, vegetables, and pulses, along with other related products, saw an increase due to weather-related disruptions, leading to a rise in CPI-Food inflation from 3 percent in May to 4.5 percent in June. This underscores the importance of a guarded approach by both RBI and the government," the Finance Ministry's monthly economic review, released on Thursday, stated.
On a more optimistic note, the document mentioned that the country's domestic fundamentals continue to show strength in terms of growth. The fiscal performance has improved, and both manufacturing and services sectors continue to expand. Additionally, there has been significant capital expenditure spending by both public and private sectors, providing ample support for India's growth in the current fiscal year.
Nevertheless, the report emphasizes the need for vigilance against potential adverse growth developments, which could hinder the growth trajectory.
GST: 28% tax on online gaming to become w.e.f 1 Oct, says FM