The government has said that GatiShakti will offset the effects of geopolitical tensions
While the geopolitical tensions caused by the conflict between Russia and Ukraine have not ceased and the economic consequences of the crisis are only gradually unfolding in the form of global food shortages and rising Brent crude prices, the government is exploring all viable options such as diversification of imports to buy crude oil at affordable prices”.
The economic overview for March 2022, released Thursday by the Ministry of Finance, states that to offset the effects of geopolitical conflicts, GatiShakti and production-related stimulus packages will stimulate investment, leading to a high recovery after recovery. growth for the Indian economy.
“Geopolitical conflicts and the resulting impact on food, fertilizer and crude oil prices”
a cloud over the growth prospects worldwide. India may feel its impact, although the magnitude will,
depends, of course, on how long the disruptions in the energy and food markets in the
fiscal year and how resilient the Indian economy is to mitigate the impact. Temporary shocks
may not have a major effect on real growth and inflation,” the report said.
“To offset this potential headwind, GatiShakti and Production Linked Incentive Schemes will”
boosting investment, which will be combined with supply chains strengthened by structural reforms
taken in recent years to deliver high post-recovery growth for the Indian economy,” the monthly review report said.
Referring to the rising prices of Brent oil, which have long passed the $100 a barrel mark, the review said that “affordability is desirable, as even the current level of the international crude oil price, if sustained for a long time, India can get in the way.” achieving real economic growth north of 8 percent in FY23. Be that as it may, India’s economy, which recovered rapidly in 2021-22 from the pandemic-induced contraction, may prove resilient thanks to government pressure on capital spending and improved corporate financial health of the sector.”
The March monthly report underlined that the strength of the Indian economy can withstand any pressure and highlighted several positive developments during the period, reflecting India’s economic recovery.
@FinMinIndia publishes Monthly Economic Review for March 2022.#MER
For the full report ➡️ https://t.co/ICFgbM4pNa
Main highlights pic.twitter.com/rwScbegXop
— Ministry of Finance (@FinMinIndia) Apr 7, 2022
For now, however, the economy is benefiting from the continued growth momentum in the agricultural sector, with the first preliminary estimates of horticultural crop production for 2021-22 pointing to an increase in sown area for both fruit and vegetables in the period 2020-21. In addition, constant increase in acreage under summer crops, crop diversification and increase in purchasing during the ongoing Kharif Market Season (KMS) 2021-22, will increase income levels in the rural economy,” it noted.
The industry has also shown robust growth, particularly in the second half of 2021-2022. The
Combined Index of Eight Core Industries registered YoY growth of 5.8 percent in February
2022, highest in the past four months after an increase in production of natural gas, coal,
refinery products, the report said.
“PMI Services has also remained in the expansion zone for eight uninterrupted months on the
back of e.g. E-toll charge, E-Way Bill, Rail freight and Air freight,
to complement the robust manufacturing industry. As a result, GST collections violated Rs.1.4
lakh crore in March 2022, heralding the start of post-recovery growth,” it added.
