After navigating coronavirus waves, the Indian economic growth has had to face upheavals galore, with commodity costs skyrocketing with surging inflation. However, the growth of the Indian economy is still visible despite the turmoil. To understand what is the Indian economy, and what it has in store, let us get a glimpse of the same in brief.
India Fastest Growing Economy
India growing economy is slated to grow further at a pace that is perhaps the quickest compared to the other economies in the category of larger league nations. This is due to the many initiatives the Indian government has taken in its Budget 2022-2023, as revealed by the Finance Ministry’s Monthly Economic Review.
More about India’s Growing Economy
As per the review report, the current year might likely end with a reset in the economy from the post-Covid era. The Construction and Manufacturing sectors will be the driving force and foster growth triggered by the public Capex and PLI scheme.
The sector which has consistently displayed an increase in the sown area and diversification of crops, namely Agriculture, will further make food buffers strong and will benefit farmers through considerable volumes of purchases that will take place remunerative minimal support costs and through the PM KISAN scheme, the income transfers will take place.
Since the International Monetary Fund (IMF) has lowered the global growth estimate in 2022, in the January 2022 update, it is being said that India is the only country and one of the major countries to have been listed by the IMF’s growth projection that has been revised uphill during 2022-2023.
The Finance Review reports stated that the Indian government’s Budget 2022-2023 has made the direction set for the Indian economy stronger. As such, the future economy of India looks bright and positive.
It also said that the Capex budget, which is higher by 35.4% in comparison to the current year’s budget estimates and surging to 4.1% of GDP following the inclusion of grants-in-aid to the states for capital works, will further empower the seven Gatishakti engines to minimize the infrastructure gap and boost the country’s private investment. A nominal growth in GDP of 11.1% has been targeted in 2022-2023 with a 3.0 to 3.5R GDP deflator. The implied, real growth component, which is about 8%, is very close to the anticipation made in the Economic Survey, 2021.2022, and 7.8% as projected by the Monetary Policy Committee or MPC in February 2022 meeting of the Reserve Bank of India.
The repo and reverse repo rate that has remained unchanged, together with MPCs’ accommodative stance, has prioritized the growth during times of uncertainty and reinforced the budget’s investment orientation.