Global information provider Dun & Bradstreet (D&B) in its latest report said geopolitical conflicts pose risk to global economic activity, potentially stalling growth momentum seen in industrial activities.
The report said that worries about the price pressure persist, especially due to geopolitical conflicts that could keep the crude oil prices elevated.
The instability in the Middle East introduces an element of uncertainty in the global commodity prices. Furthermore, inflation in cereals and pulses remain high, while vegetable prices have started to stabilise, it said.
About the external sector, the report said D&B expects the consumer price index to be at 4.7 per cent and wholesale price index at minus 0.5 per cent for October 2023. The rupee will witness minimal relief as the federal reserve is expected to maintain higher interest rates for a longer period.
The high crude prices combined with the strength of the USD is likely to exert pressure on the India rupee. The central bank i.e RBI is expected to continue to intervene to stabilise the volatility of the rupee, the report added.
Global chief economist of D&B, Arun Singh said, "The Indian economy is gaining momentum driven by private comsumption and invesments. The completion of the dedicated freight corridors will significantly reduce transit duration and costs which will also attract foreign investors".
Inflation will remain high due to volatility in global energy and food prices, it added.