“The narrowing merchandise trade deficit and rising net services receipts are expected to result in an improvement in the current account balance in the ongoing financial year,” the report said. However, the current account deficit will bear watching in FY25, it cautioned.
The ministry has a positive outlook when it comes to retail inflation in the country.
“Core inflation is trending downwards, indicating a broad-based moderation in price pressures. The pick-up in summer sowing is likely to help reduce food prices,” it said.
The report also notes of headwinds to trade like indications of hardening crude oil prices and global supply chain bottlenecks.
“Strong growth accompanied by stable inflation and external account and progressive employment outlook help the Indian economy close the current financial year on a positive note,” it said. “India, on the whole, looks forward to a bright outlook for FY25,” the report added.
