Finance Ministry: Good agricultural yield will reduce inflation of food items
New Delhi| Food inflation of essential commodities will decline in the coming months due to better agricultural production. However, tensions between many countries can also affect supply chains. Agriculture will benefit from good monsoon conditions, increased minimum support price and adequate supply of goods used in farming, the Finance Ministry said in an October report released on Monday. According to the report, prospects for better agricultural yields have softened the inflation outlook despite current price pressures in select food items.
Food inflation will come down in the coming months due to November trends and bumper Kharif crop. Several indicators of economic activity showed a good return in October. Rural and urban demand is prominent in this.
According to the report, the formal workforce is expanding. The significant increase in manufacturing sector jobs and the number of young people in the organized sectors are growing rapidly. India’s export recovery may face challenges due to softening demand in developed markets. There is good growth in service sector trade. A significant increase in net foreign direct investment was recorded between April and August this year.
