Economic recovery strong, but inflation fears persist: Finance ministry

The monthly economic report stated that rupee depreciated by 5.4% against the dollar in the first six months of FY23, less than the depreciation of 8.9% of six major currencies in the DXY Index

India has performed better than developing peers, as well as developed G-20 partners in terms of growth and managed inflation better than most nations. However, the geopolitical situation may yet deteriorate, and inflation may see a resurgence in 2023 rather than a decline, the Finance Ministry said in its latest monthly economic report (MER) on Saturday.

“Halfway into FY2022-23, growth and stability concerns for India are less than that of the world at large. As measured by PMI composite index, economic activity level was higher for India at 56.7 compared to 51.0 for the world during April-Sept 2022,” the September