WHILE the world is slowing down, India is galloping on the growth path. In 2022- 23, the country’s Gross Domestic Product (GDP) increased at 7.2 per cent. Quarterly growth figures released by the National Statistics Office show that in the January-March quarter, the GDP growth rate was 6.1 per cent; in the previous quarter, i.e., OctoberDecember, it was 4.5 per cent; in JulySeptember 6.2 per cent and 13.1 per cent in April-June 2022. This means that the Indian economy has overtaken China’s growth rate of 4.5 per cent. Chief Economic Advisor Ananth Nageswaran predicts that the growth rate will be 6.5 pc in the current financial year.
This is corroborated by the recently released annual report of the Reserve Bank of India (RBI) which states that India’s growth rate in 2023–2024 will be 6.5 per cent due to strong economic policies and a softening of prices on every front.
All global indicators too point in this direction, such as American firm Morgan Stanley’s latest research report titled ‘India Equity Strategy and Economics: How India has Changed in Less Than a Decade’; multinational brokerage firm Goldman Sachs Group and Bloomberg.
The Morgan Stanley report states that in a span of 10 years, India has greatly strengthened its position in the world. During this period, important positive results have emerged for macro and market scenarios. GST collection has greatly formalised the economy, and its graph has shown a steady increase in the last few years. Digital transactions have increased to 76 pc of the GDP, says the report.
The World Economic Forum (WEF) also says that India’s growth rate can be 6 per cent this year. Borge Brende, WEF President, feels that India is facing a “snowball” effect while his opinion on global growth is the opposite. He says that developing countries have a lot to learn from India – an open society with space for entrepreneurs and innovators and the freedom to speak one’s mind.
He says India will be the fastest among the major economies in the world. A lot of investment will come into the country, and jobs will also be created on a large scale. India is being praised as a completely different country than what it was in 2013.
All global reports are praising the fact that India is the Chair of the G20. The reforms in the country have reduced redtapism and created a better environment for investments. The digital revolution is changing the country’s scenario rapidly.
A report titled ‘Asia Economics: The Viewpoint: Addressing the Pushback to Our Constructive View,’ authored by Chetan Ahya, Derrick Y. Kam, Kyusha Peng, and Jonathan Cheung, says that India faces challenges which are both cyclical and structural in nature.
They say, “We are seeing a healthy balance sheet to sustain strong trends in domestic demand. Improving macro stability means that monetary policy will no longer be restrictive, allowing economic expansion to continue.”
Things that India should especially focus on in the near future, for growth to sustain in the long run are, infrastructure, connecting different sectors in a better way, improving the quality of education and healthcare. Only then will the citizens be able to take full advantage of the ongoing reforms.
