According to a report in a British daily newspaper, Indian billionaire Anil Agarwal is optimistic about the country’s economy. On Twitter, Agarwal stated that he read in the Financial Times that “most countries are slowing down, while India is the world’s only large economy in a “bright spot,” with strong indicators indicating robust growth this year and next.”
The Vedanta Chairman praised India’s achievements and added, “The world is watching and waiting for us…as our Amrit Kaal has just begun.”
Due to soaring food prices, the Russian-Ukraine war, and geopolitical uncertainty, a mood of mounting pessimism is currently taking hold across the globe, harming the prospects of businesses and consumers. Hard economic data and leading financial indicators have indicated that global economic momentum is slowing. However, despite the fact that every country is experiencing an economic slowdown, India has remained unaffected, according to a top International Monetary Fund (IMF) official. With strong indicators pointing to robust growth this year and next, India is the world’s only large economy described as a “bright spot.”
According to IMF data, the rest of the world’s major economies are grappling with mounting economic problems.
“Nearly every country is slowing.” “In that context, India is doing better and is in a relative bright spot compared to the other countries in the region,” said Krishna Srinivasan, Director of the IMF’s Asia and Pacific Department.
“We expect countries accounting for one-third of the global economy to enter a recession this year or next,” Srinivasan added. And inflation is out of control. So that is the overall story.
The IMF projected 6.8% growth in 2022 in its World Economic Outlook this week, compared to 8.7% in 2021 for India.
The IMF has significantly reduced India’s economic growth forecast for FY23, citing external headwinds and weaker-than-expected second-quarter growth.
The IMF has commended the Reserve Bank of India (RBI) for tightening monetary policy in order to reduce inflation in the country.
“The RBI has appropriately tightened to combat inflation as inflation is above target, and since May, if my memory serves me correctly, it has delivered 190 basis point rate hikes, and we believe further tightening is required to bring inflation to its target,” Garcia Pascual, Deputy Division Chief of the IMF’s Monetary and Capital Markets Department, said at a Washington conference.