<p>Rising oil prices are a concern for the Indian economy but its outlook remains bright after better September monsoons and a retreat in the prices of some key food items, the government said in its monthly economic report on Friday.</p>.<p>The comment comes as oil prices rose to 10-month highs earlier this week before easing, on extended production cuts from key suppliers Saudi Arabia and Russia.</p>.<p>India, the world's third-largest energy importer, purchases more than 80 per cent of its crude oil from international markets.</p>.<p>"The recent run-up in oil prices is an emerging concern. But, no alarms yet," the government said in its report.</p>.<p>India's economic outlook for the fiscal year 2023/24 remains "bright" after better September monsoon rains, the government added.</p>.High crude prices bad for India’s economic outlook.<p>India is forecast to receive heavy monsoon rains at the tail end of the four-month season after the driest August in more than a century hit some summer crops.</p>.<p>Prices of some key food items that drove the inflation rate above 7 per cent in July are easing, the government said in its report.</p>.<p>"With vegetable prices correcting and government and monetary measures in place, inflation is expected to trend downward in the coming months," the government said.</p>.<p>India's retail inflation (INCPIY=ECI) eased in August as food prices moderated, but held above the upper end of the Reserve Bank of India's 2 per cent-6 per cent target for a second month.</p>.<p>However, the RBI was not expected to hike its key policy rate anytime soon and instead start cutting in the second quarter of 2024. Food prices have been a key concern for policymakers since last year as erratic weather conditions have hurt the output of vegetables, milk and cereals.</p>.<p>India's baseline estimate for economic growth is 6.5 per cent, the government added.</p>
<p>Rising oil prices are a concern for the Indian economy but its outlook remains bright after better September monsoons and a retreat in the prices of some key food items, the government said in its monthly economic report on Friday.</p>.<p>The comment comes as oil prices rose to 10-month highs earlier this week before easing, on extended production cuts from key suppliers Saudi Arabia and Russia.</p>.<p>India, the world's third-largest energy importer, purchases more than 80 per cent of its crude oil from international markets.</p>.<p>"The recent run-up in oil prices is an emerging concern. But, no alarms yet," the government said in its report.</p>.<p>India's economic outlook for the fiscal year 2023/24 remains "bright" after better September monsoon rains, the government added.</p>.High crude prices bad for India’s economic outlook.<p>India is forecast to receive heavy monsoon rains at the tail end of the four-month season after the driest August in more than a century hit some summer crops.</p>.<p>Prices of some key food items that drove the inflation rate above 7 per cent in July are easing, the government said in its report.</p>.<p>"With vegetable prices correcting and government and monetary measures in place, inflation is expected to trend downward in the coming months," the government said.</p>.<p>India's retail inflation (INCPIY=ECI) eased in August as food prices moderated, but held above the upper end of the Reserve Bank of India's 2 per cent-6 per cent target for a second month.</p>.<p>However, the RBI was not expected to hike its key policy rate anytime soon and instead start cutting in the second quarter of 2024. Food prices have been a key concern for policymakers since last year as erratic weather conditions have hurt the output of vegetables, milk and cereals.</p>.<p>India's baseline estimate for economic growth is 6.5 per cent, the government added.</p>