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General financial exercise has recovered to pre-pandemic ranges & financial system is well-poised for FY23, the survey says.
- Demand weak spot, full restoration in exports, authorities consumption and gross fastened capital formation.
- Non-public consumption nonetheless struggling due to the affect of the pandemic
- Amongst sectors, companies commerce, inns, transport, and communication are nonetheless under pre-pandemic ranges.
INFLATION:
- Shopper inflation inside goal; excessive wholesale inflation is partly because of base impact and will ease out.
- Imported inflation a priority, particularly from excessive power costs
GOVERNMENT FINANCES:
- Sturdy rebound in authorities revenues in FY22.
- Govt will comfortably meet fiscal targets with out reducing scheme spending or capex
EXTERNAL SECTOR:
- Excessive foreign exchange reserves, sustained FDI and rising exports present an sufficient buffer towards doable international liquidity tapering in 2022-23
FINANCIAL SECTOR:
- Banking system properly capitalised and overhang of NPAs appear to have structurally declined.
- Capital markets sturdy, permitting threat capital mobilisation
KEY RISKS:
- World atmosphere unsure, Omicron sweeping the world over
- Inflation has jumped throughout many international locations
- World central banks starting to withdraw liquidity
- Excessive power costs
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