Demand Conditions A Concern For Economy: FinMin Report

New Delhi: The performance of the Indian economy has been satisfactory during the first half of the ongoing fiscal year, but concerns remain with regard to demand conditions going forward, the finance ministry said in a report.The outlook for the Indian economy is good, underpinned by a stable external sector, positive agricultural outlook, expected improvements in demand supported by the festival season, and the likelihood of an increase in government spending, which will boost investment activity, it said.

However, at the margin, demand conditions in the economy bear watching, the September edition of Monthly Economic Review released by the Department of Economic Affairs on Monday said.Urban demand appears to moderate due to softening consumer sentiments, limited footfall due to above-normal rainfall, and seasonal periods during which people tend to refrain from new purchases.