Growth, inflation risks from rising energy prices: Finance Ministry

Elevated prices of energy and other commodities and supply side disruptions due to Russia-Ukraine conflict pose a challenge to the growth trajectory and upside risks to inflation, the Finance Ministry said in its monthly economic review report for March, released on Thursday. The movement in oil prices is expected to dominate inflationary trends in the coming months, it said, adding the government has been taking steps to diversify import sources which includes buying cheaper crude oil from Russia and diversifying energy sources beyond traditional hydrocarbons.

GatiShakti and Production-Linked Incentive Schemes will offset global headwinds and drive investment, resulting in high post-recovery growth for the Indian economy, it said.