Risk of stagflation in India low: FinMin
The Indian economy is expected to witness slowing growth, though still higher than the other emerging market economies, the Ministry of Finance stated in its latest monthly economic report. However, the risk of India facing stagflation is low owing to its prudent stabilisation policies, it stated. As per the report, challenges for policymaking in the ongoing fiscal include maintaining growth momentum, restraining inflation, keeping the fiscal deficit within budget and ensuring a gradual evolution of the exchange rate in line with underlying external fundamentals of the economy. The ministry stated that successfully pulling it off will require prioritising macroeconomic stability over near-term growth.