India's economic outlook for coming months 'cautiously optimistic'

India's economic outlook for the coming months is "cautiously optimistic," with agriculture likely to benefit from favorable monsoon conditions, increased minimum support prices and adequate supply of inputs, the Finance Ministry said in a report.

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"Bright agricultural production prospects make the inflation outlook benign, despite existing price pressures in select food items," the October edition of Monthly Economic Review released by the Department of Economic Affairs on Monday said. Early November trends signaled moderation in key food prices, though geopolitical factors may continue to impact domestic inflation and supply chains, it said.

A bumper kharif harvest is expected to lower food inflation in the coming months, it said, adding that a favorable monsoon, adequate reservoir levels and higher minimum support prices are likely to boost rabi sowing and production.