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Expressing optimism over the economic condition of the country, Finance Ministry has said that the economy is on course to achieve projected 8-8.5 per cent growth based on high-frequency indicators for the first quarter of the current fiscal. Minister of state for finance Pankaj Chaudhary said ‘since then, sustained growth momentum has been observed in several High Frequency Indicators (HFIs), indicating that the projected growth path is on course in the first quarter of FY 2022-23’.

In order to ensure continued growth momentum, he said the government has taken several steps to address high inflation imported from abroad. He said these include cut in excise duty on petrol and diesel and special excise duty/cess on the export of petrol, diesel and aviation turbine fuel that are likely to alleviate inflationary pressures. Further, to rein in inflation, he said RBI in its June Monetary Policy Committee meeting hiked the repo rate by 50 basis points, on top of the earlier hike of 40 basis points in May 2022.

On the impact of geopolitical tension on Indian economy, he said, Russia-Ukraine war has led to global supply disruptions resulting in steep increase in global commodity prices, including prices of crude oil, gas, edible oils and fertilizers, among others. He highlighted that the government is closely monitoring the global price movements and their impact on India’s economy through trade.