Hopes are rising to control inflation and accelerate economic growth in India. The latest monthly economic review of the Finance Ministry has indicated that the Indian economy may move in a positive direction in the coming months. Along with the fall in food prices and the strength in the agricultural sector, many other indicators confirm this change.

Expectations of a decline in inflation increased.

The country's retail inflation rate reached 6.21% in October, which was the highest level in 14 months. The reason for this was a huge increase in the prices of major food products like tomatoes, onions, s and potatoes. However, the possibility of good monsoon and better production of crops has helped reduce this pressure. According to the report, there has been a downward trend in the prices of food items in early November.

Experts believe that an increase in Minimum Support Price (MSP) and better agricultural production will increase demand in rural areas and reduce inflation pressure.

Indicators of economic recovery are strong.

• Even though economic activity had slowed down somewhat during the monsoon months, many key indicators registered improvement in October.
• Purchasing Managers Index (PMI) and e-way bill generation showed a pick-up in rural and urban demand.
• Employment opportunities have increased in the manufacturing sector, which has increased the number of young workforce in the organized sector.

All these indicators show that the Indian economy is moving towards growth.

Export potential despite global challenges

However, geopolitical instability globally and lack of demand in developed markets may pose challenges for India. The Russia-Ukraine war and instability in global financial markets may impact Indian exports. Despite this, exports of services will continue to grow, which will help keep the Indian economy stable.

A ray of hope for the future

The report says that increased agricultural production and strong rural demand will form the basis of economic recovery. Also, financial and policy stability will improve the growth rate. However, global geopolitical instability and pressure on supply chains may continue.

It is clear that India's economy, despite many external and internal challenges, can move towards strength and stability in the coming months.