Economic recovery strong, but inflation fears persist: Finance ministry

India has performed better than developing peers, as well as developed G-20 partners in terms of growth and managed inflation better than most nations. However, the geopolitical situation may yet deteriorate, and inflation may see a resurgence in 2023 rather than a decline, the Finance Ministry said in its latest monthly economic report (MER) on Saturday.

“Halfway into FY2022-23, growth and stability concerns for India are less than that of the world at large. As measured by PMI composite index, economic activity level was higher for India at 56.7 compared to 51.0 for the world during April-Sept 2022,” the September MER said. It added that average retail inflation for India during these six months stood at 7.2 per cent, lower than the world inflation of 8.0 per cent, as represented by the median inflation of major economies.

Even as rupee touched fresh lows against the dollar, the MER stated that the currency depreciated…