Global slowdown may dampen India’s exports: Finance Ministry report

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Easing global commodity prices and new Kharif crop arrivals will dampen inflationary pressures in the coming months and the pass-through of higher input prices to retail inflation is near complete, the Finance Ministry said in its latest monthly economic review report on Thursday.

India is well-placed to grow at a moderately brisk rate in the coming years on the back of macroeconomic stability, despite the global monetary tightening, it said. So far in the current year, India’s food security concerns have been addressed and will continue to receive the utmost priority from the government, according to the report.

“A rapid deterioration in global growth prospects, coupled with high inflation and worsening financial conditions, has increased fears of an impending global recession. The global slowdown may dampen India’s exports businesses outlook; however, resilient domestic demand, a re-invigorated investment cycle along with strengthened financial system and structural reforms will provide impetus to economic growth going forward.” FE