Niti Aayog member Arvind Virmani has said that the Indian economy will grow by 6.5 percent in the current financial year. Further India will not be affected by the problems in American and European banks. Because no major impact has not been on the Indian financial sector due to the ongoing banking crisis in the US and Europe.
Indian Niti Aayog has lowered its forecast for India’s economic growth to 0.5 percent for the current fiscal due to various changes in the past years. So that’s 6.5 percent. It could be 0.5 percent more or less. Further Indian economy should be like the US Federal Reserve System, which has an inflation target, while also taking GDP into account. At the same time, the gross domestic product should be taken into account.
India’s growth rate is between 6.3 percent and 6.4 percent, according to World Bank and Asian Development Bank recently. Similarly, the International Fund known as IMF has reduced India’s economic growth rate in the current financial year. While the growth rate had already been predicted to be 6.1 percent, it has now been reduced to 5.9 percent.
At the same time, India is the fastest-growing economy in the world. RBI has changed the repo rate six times since May last year due to high inflation. It was suspended earlier that month. The cumulative rate hike for May 2022 is 250 basis points.
IMF’s Observation on the Indian Economy
Amidst the international tension, there are also various headaches, the Indian economy is seeing good growth. Although the global economy is slow, the Indian economy is one of the fastest-growing countries, according to top officials of the International Monetary Fund.
This view of the International Monetary Fund comes at a time when the economy is expected to grow by 5.9 percent in 2023-24. It was earlier estimated at 6.1%. Indian economy is one of the fastest-growing economies in Asia. It is also one of the fastest-growing economies in the world. On the other hand, the forecast for the growth of the Indian economy has been reduced compared to the previous forecast. Although the economy has slowed growth, consumption has slowed down.
Last year’s data on consumption growth to 2022 indicated that the economy is slowing down. The PMI ratio is a sign that credit growth is in double-target while consumption has slowed. In the meantime, experts have pointed out that capital means may increase.
Growth in the infrastructure sector may also increase. This same medium can have a huge impact on the term. So this too can play an important role in the development of India. The overall export of nuts has increased. Exports from the service sector in particular have seen strong growth.
Amidst the global crisis, there is volatility in global financial markets. This may lead to the outflow of investments from the market. This can also impact demand.
India and China can act as major economic countries during this period. Both Asian countries will play an important role for the international economy in the future. Neighboring countries are becoming technological hubs. Especially in areas like IT, renewable energy and AI are driving global growth.
India and China can help avoid economic collapse. The International Monetary Fund has pointed to a number of cost and downside problems amid economic stimulus. India and China play important roles internationally. G20 countries can also play an important role in the economy. Meanwhile, the global economy is expected to grow by 3% in 2022. The growth rate of China is expected to be 5.2%. China’s growth may be higher.
Instead of infrastructure investment, China’s growth rate will continue to be fueled by private contributions. The IMF expects China’s growth to outpace that of Asian countries. However, inflation may be the biggest challenge for Asian countries. This will continue to help central banks keep interest rates high for the long term.
However, inflation may be the biggest challenge for Asian countries. This will continue to help central banks keep interest rates high for the long term. Not only Asian banks, but US and European countries may also increase interest rates. This may push up interest rates for corporate. This can also have an impact on the growth of the economy. GDP in most Asian countries may slow. However, continuing education, health, and employment may be affected.
