India is set to achieve 6.5 to 7 percent Gross Domestic Product (GDP) growth in the current financial year, said Finance Ministry in its Monthly Economic Review for August released on Thursday. The report highlighted that the economic momentum continued in first quarter of current fiscal year supported by over five percent growth in all major non-agricultural sectors.

Retail inflation remained moderate at 3.7 percent in August 2024, driven by softer food and core inflation. The review reflected that the outlook for inflation trajectory remains positive. Food inflation will remain milder in the short-term supporting rural incomes and demand in absence of climatic shocks.

However, the August Print of the economic review cautioned about dynamics of global trade and uncertainty in global economic prospects. It further stated about decline in capital spending by states, moderating sales of passenger vehicles, slow growth of fast moving consumer goods sales in urban areas and build-up of inventory in auto industry.