The Indian economy is likely to grow more quickly than initially anticipated, with growth averaging 6.3per cent in the FY24 compared to 6per cent earlier, even though it confronts the possibility of increased inflation, according to the Organization for Economic Cooperation and Development (OECD) Economic Report.
India’s inflation rate was substantially increased by the OECD up from 4.8 per cent in June to 5.3 per cent. “Global GDP growth is projected to remain sub-par in 2023 and 2024, at 3per cent and 2.7per cent respectively, held back by the macroeconomic policy tightening needed to rein in inflation”, it said.
It also added that during 2023 and 2024, inflation is expected to progressively decline but in the majority of economies, it will still be higher than the central bank’s objectives. The G20 economies’ headline inflation is expected to decline to 6per cent in 2023 and 4.8per cent in 2024, while the advanced G20 economies’ core inflation will fall from 4.3per cent this year to 2.8per cent in 2024. The majority of G20 advanced nations have not yet experienced a significant decline in core inflation (excluding food and energy prices). The annual average core inflation rate for the G20 advanced economies is predicted to be 4.3per cent in 2023, somewhat higher than in 2022 despite a falling trend through this year, before declining to 2.8per cent in 2024 as cost pressures lessen and profit margins level out.
As vegetable prices somewhat decreased from the prior month, India’s retail inflation decreased to 6.83 percent in August from 7.44 percent in July, according to the National Statistical Office (NSO).