Inflationary pressures may stay elevated in coming months: Indian govt

The price pressure in food items is expected to be transitory as evident in the steady performance of the agriculture sector, along with fresh arrivals in the market. The agricultural sector is picking up momentum with significant advancement in monsoon and kharif sowing, the ministry said in its monthly economic report for July released recently.

Domestic consumption and investment demand are expected to continue driving growth.

The external sector needs monitoring to strengthen the country’s merchandise export growth amid slowing global demand, although services exports are expected to continue to do well, the report said.

"Geopolitical and geo-economic concerns have not abated, and they may be an enduring reality for quite some time. Consequently, maintenance of macroeconomic stability is paramount to keep interest rates from rising too much, to underscore the relative attractiveness of India as a zone of performance and promise for domestic and international investors and to maintain steady economic growth," the ministry said in the report.

Maintenance of macroeconomic stability is paramount to keep interest rates from rising too much, to underscore the relative attractiveness of India as a zone of performance and promise for domestic and international investors and to maintain steady economic growth, the report added.

ALCHEMPro News Desk (DS)