Demand compression in Indian economy a serious concern: Finance Ministry
The Finance Ministry has warned that demand compression in the Indian economy is a serious concern due to high prices, rising inflation, and slowing economic activity. India's crude basket averaged $114.46 per barrel as of April 24, up from $113.5 per barrel in March, feeding into headline inflation.
The Finance Ministry's monthly economic review has identified demand compression as a serious concern in the Indian economy. High prices, rising inflation, and a slowing pace of economic activity could exert pressure on demand. The ministry noted that inflation may turn 'cost-push' as businesses pass on surging input costs. India's crude basket price rose to $114.46 per barrel as of April 24. The ministry outlined five priorities for India to navigate the economic shock, including energy security, domestic deregulation, agricultural reforms, investing in AI-resilient trade skills, and strengthening tax policy certainty.
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