The pace of the economy to increase in the third quarter
New Delhi| All concerned need to work together to sustain economic growth amid new challenges. It is expected that the growth rate of the economy is expected to be better in the third quarter of the current financial year.
The Finance Ministry said in the monthly report that after the slowdown in the second quarter of the current financial year, the outlook for the third quarter is looking better. This is known from important data for October and November (GST collection, PMI etc.). Moreover, rural demand is strong. Sales of two-wheelers and three-wheelers have increased by 23.2 percent in October-November, 2024. Sales of tractors and passenger vehicles have been up by 9.8 per cent and 13.4 per cent respectively. Increase in minimum support price for Rabi crops, higher water level in the reservoir and adequate fertilizer availability are good signs for Rabi sowing.
The report said that the high level of the stock market is posing a big risk. The strengthening of the dollar and the rethinking of the policy rate in the US have put emerging market currencies under pressure. This requires monetary policy-makers in emerging economies to think more deeply about policy rates. It further notes that the outlook for the agricultural sector is optimistic. This gives hope that the pressure on food prices will gradually reduce.
