April marks a ‘good beginning’ to FY24, the finance ministry said, pointing to strong goods and services tax (GST) collection and other high-frequency data, but flagged downside risks to growth and upside risks to inflation. A good beginning, though, is a harbinger of positive outcomes,” said the upbeat report even as it flagged external risks. The power sector emerged as a major contributor to new investment, with proposals worth ₹1.8 lakh crore, the review noted. The outlook for the services sectors, too, remains bright, as indicated in the RBI’s Services and Infrastructure Outlook Survey. GST collections in April underwent a level shift pushed up by the widening of the tax base and heightened economic activity.

Source: Economic Times May 23, 2023 11:33 UTC