According to the economic review, economic activity remains optimistic with a pick-up in mobility, resilient electricity demand, healthy tolling and e-waybill generation. The GST of over Rs 1.3 lakh crore in February adds to this estimate.
The rural economy is expected to boost with a good rabi sowing season, and production of key crops such as rice, wheat, gram, maize and oilseeds is also expected to hit record levels, it said.
However, the review found that fertilizer availability remains a warning point with ongoing geopolitical tensions, as India relies heavily on Russia and Belarus for imports in this category.
Measures taken by the government, such as imposing limits on the holding of edible oils, open market sales and rationalization of tariffs and cessions have contributed to the stability of the prices of essential goods, the document said.
The RBI has estimated CPI inflation at 4.5% for FY23.
Meanwhile, WPI saw an increase to 12.7% in the April-February period of FY22, driven by a low-base effect and is expected to moderate in the coming months.
The review hopes the focus on budget investment spending will help the economy grow amid global political turmoil and increased volatility in financial markets.
This post Growth likely at estimates, but crude oil worries, February Economic Review says was original published at “https://www.bloombergquint.com/business/growth-likely-to-toe-estimates-but-crude-surge-a-worry-says-february-economic-review”