Just before the pujas, on September 22 this year, the centre implemented a new simplified GST infrastructure in the country. As a result, prices of multiple products dropped considerably during the festival season. Consequently, people across the country shopped generously during the festive season. Due to this, rating agency Fitch Ratings authorities estimate that India's economic growth rate may remain above 7 per cent. They estimate that the country's economic growth rate could reach 7.4 per cent in the current financial year. Earlier, the rating agency had projected GDP growth at 6.9 per cent.
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According to news agency reports, authorities of the global rating agency have stated that public consumption will play a crucial role in economic growth during the current financial year. This has been further strengthened after the simplification of the GST infrastructure.
According to central government data, the country's GDP growth rate reached 8.2 per cent in the second quarter of the current financial year. This is the highest level in the last six quarters. Notably, the country's GDP growth rate was 5.6 per cent in the second quarter of the previous financial year.
News agency reports claim that food prices in June this year had decreased compared to June last year. Since then, food prices have gradually declined throughout the current year. Above-average rainfall during this year's monsoon season and adequate food supply in the country have helped reduce food prices. As a result, the country's retail inflation rate has reached rock bottom-0.3 per cent. Notably, the inflation rate for food and beverages in October this year was (-)3.7 per cent.
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Fitch authorities have also stated that due to the declining inflation rate, the Reserve Bank of India's Monetary Policy Committee will have the opportunity to further reduce the repo rate in December this year.
