NEW DELHI: According to the monthly economic review published by the Finance Ministry on Saturday, it is said,  economic growth is expected to strengthen in the upcoming months due to the revival of contact-intensive services and an increase in private consumption.

The review noted that inflationary pressures are anticipated to wane as external pressures do as well. The GDP of India increased by 13.5% in the first quarter of the current fiscal.

The investment rate in the first quarter of 2022–23 will reach one of its greatest levels in the past ten years, the report said. "Increase in private consumption and improved capacity utilisation in the present year has further rejuvenated the capex cycle," it stated.

The department of economic services indicated in a report that the first quarter of the current fiscal year, or the first quarter of 2019–20, saw economic growth that was significantly higher than the pre-pandemic period.

As per review, "India's real GDP in the first quarter of 2022–23 is currently about 4% higher than its corresponding level of 2019–20, signalling a strong beginning to the country's growth revival in the post–pandemic era. It went on to say that continued revenue growth for the government will support capital spending in the current fiscal year.

As India integrates with the rest of the globe, there are still risks to the growth and inflation trajectories, according to the finance ministry. Core inflation may also continue to be sticky in the coming months as businesses pass on increased input prices to customers as soon as possible.

To achieve economic goals, prudent fiscal management and a credible monetary policy will be crucial because they will ensure that borrowing costs for the public and private sectors are reduced, encouraging the production of both public and private capital.

Geopolitical tensions may increase throughout the winter due to increased attention being paid to energy security in developed countries, putting India's so far savvy management of its energy demands to the test. It went on to say that it might not be possible to be content and take it easy for very long in these uncertain times.

Poor crop seeding for the Kharif season is also a danger, the study noted, and this necessitates some clever and careful management of stocks and prices, while at the same time not impeding exports.

In the midst of all of this, vigorous asset monetization at all governmental levels will help reduce the debt stock and consequently the expenses of debt servicing, it noted further.

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