The Economic Survey 2023-24, presented in Parliament today, underscores the critical role of maintaining low and stable inflation for sustained economic growth. It highlights the challenges faced by governments and central banks in balancing inflation control with financial stability.
Economic Survey 2023-24: India’s Inflation Management
The survey lauds India’s effective inflation management, with retail inflation at 5.4% in FY24, the lowest in four years. This achievement is attributed to the Reserve Bank of India’s commitment to price stability and timely policy actions by the Central Government.
Comparison with Global Averages
India’s retail inflation rates in 2022 and 2023 were lower than the averages of emerging markets and developing economies (EMDEs) and the global average, according to IMF data. This success is credited to established monetary policies, economic stability, and efficient markets.
Future Projections and Recommendations
Looking ahead, the RBI and IMF project India’s inflation to align with targets in FY26, assuming normal monsoon conditions and no external shocks. The survey suggests reducing import dependence on edible oils, expanding the area under pulses, and improving storage facilities for vegetables as measures to ensure long-term price stability.
