Indian Economy: Common people can get relief from inflation after the drop in commodity prices in the international market and the arrival of new Kharif crop in the market. The Department of Economic Affairs of the Ministry of Finance has released its Monthly Economic Review in which these things have been said. In this report of the Finance Ministry, it has been said that due to the decline in global growth, high inflation and deteriorating financial conditions, the risk of global recession has increased.
impact on economic activity
The report of the Ministry of Finance says that due to the high inflation rate, there has been an increase in interest rates in many developed countries. It has been said in the report that the impact of expensive debt and high inflation rate has been felt on the global economic activity.
Russia-Ukraine war increased inflation
According to the report, after the arrival of the Corona epidemic, due to domestic and global reasons, there has been a big impact on the inflation dynamics in India. In 2020, a decline in the wholesale inflation rate was observed due to the fall in global commodity prices. Due to the restrictions imposed due to the Corona epidemic, there was a spurt in retail inflation during this period. But in 2021, due to problems in the supply chain, global commodity prices rose. 2022 saw a tremendous jump in commodity prices after the war between Russia and Ukraine.
New hiring will increase
The good news coming in the report has also been indicated. According to this report, looking at the removal of Corona restrictions and the sales volume in the festive season, it can be said that due to new business hiring, tremendous hiring can be seen from the companies in the coming two quarters.
Will get support from domestic demand
It has been said in the report that due to the global economic slowdown, there may be a decline in India’s exports. However, due to strong domestic demand, investment and structural reforms, it will help in accelerating economic growth.
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