During FY22 and FY23, the Covid-19 pandemic, geopolitical tensions, and supply disruptions contributed to rising inflationary pressures globally.

According to the Economic Survey, consumer goods and services faced price hikes in India due to international conflicts and adverse weather conditions impacting food costs.

“However, in FY24, the Central government’s timely policy interventions and the Reserve Bank of India’s price stability measures helped maintain retail inflation at 5.4 per cent -- the lowest level since the pandemic,” said the Economic Survey tabled in the Parliament by Union Finance Minister Nirmala Sitharaman.

The survey says that the headline inflation rate is largely under control, although the inflation rate of some specific food items is elevated.

The survey presented by Finance Minister Nirmala Sitharaman and prepared by the Economic Division under the Ministry of Finance provides a detailed analysis of the economic performance for the fiscal year 2023-24.

The government expects the economy to grow between 6.5 and 7 per cent in FY 25.