The Ministry of Finance released the monthly economic review for June 2022 on Thursday. The review added that the corporate sector has started showing signs of revival with robust growth, gross non-performing assets ratio declined to its lowest level in six years, and that the rupee has performed well compared to other major economies.
The following are the key highlights of the June economic review:
- The revival of monsoon and Kharif sowing has ensured an uptick in the agriculture sector.
- The real purchasing power in the rural sector is set to rise. Terms of trade (ToT) for agricultural commodities have turned positive since March.
- The corporate sector has shown signs of revival with robust growth in the March quarter.
- Indices of core industries production, industrial production, and freight traffic showed sequential and year-on-year improvement in 2022-23 Q1.
- Government’s focus on expanding capital growth has resulted in its on-year growth of 70.1 per cent in May.
- Government announced rules for disbursing Rs 1 lakh crore in interest-free capex loans to states.
- Pending and completed mergers and acquisitions deals reached their highest aggregated value ever in the Q1 2022-23.
- Gross NPA ratio declined to its lowest level in six years during 2021-22, bolstering banks’ lending capacity.
- Overall bank credit registered double digit growth in the second week of June 2022, signalling sustained growth in activity levels.
- Domestic inflation moderated in June driven by relief measures as well as dip in international commodity prices.
- During 2022, rupee performed well compared to other major economies.
- RBI measures are set to enhance forex inflows while ensuring macroeconomic and financial stability.
Also read: WPI inflation eases to 15.18% in June as against 15.88% in May