Will India Soon Become The Fastest Growing Economy In Asia?

India (14/08/2022): According to reports by Morgan Stanley, India will become the fastest-growing Asian economy in 2022-2023. During this period, India is expected to see a growth of 7% in its GDP, which is one of the most vigorous GDP growth in the Asian economy. This will further contribute to 28% growth in the Asian economy and 22% in the global economy. The GDP growth of the contribution can be attributed to the government policy that focuses on increasing the country’s productive capacity. Further, the government has implemented a few policy reforms to catalyse this growth. 

There Is A Drop In Commodity Price

The hope that India will be the highest growing economy in Asia stems from the recent drop in commodity prices, especially crude oil. Since March 2022, the country has witnessed a drop in crude oil and commodity price, which will give rise to macro stability. This will be especially helpful to the low-income group who, from time to time, depend upon the Teer Result of Lottery Sambad to earn some extra money to sustain their livelihood. The drop in the commodity price will also ensure that the Reserve Bank of India may not need to hike the rates in the immediate future.

In addition to the commodity price fall, India also opened and further helped economic recovery. With increased mobility, there is a rising demand from the customer’s side, which is at par with the pre-Covid levels. 

Also, at present, India does not have enough forex to pay for its import. Again, this should not be a matter of concern because electronic costs and crude oil prices have come down, and everything will stabilise shortly. 

Previously, the cost per barrel of oil was $110, and it has now come down to $95-96. This is a sigh of relief for the importers. In addition, the RBI is continuously working to bring down the inflation rate. 

It is expected that the normal monsoon the country is currently experiencing will further bring down the cost of food grains, which will help ease inflation. 

What About The Alarm Bells?

Even though the country might see economic growth, there are many alarm bells too. For instance, currently, India is struggling with inflation, a declining rupee and a widening trade deficit. There are red flags at present. However, according to experts, one should not worry much about it because soon the situation will be under control and stabilise soon. 

Even though there is a decline of 7% in the rupee value against the US dollar, it is a manageable situation. Further, the country is not entering a recession any time soon. The country is on its path to steady growth. The country is currently struggling with inflation; however, at the same time, it is working on its economic recovery too. Higher industrial output and supply-demand contribute to this economic growth. 

India’s Economy Is Still Vulnerable 

Even though optimistic views regarding India’s economy are floating around, the International Monetary Fund (IMF) does not hold the same view. In fact, it has cut down the country’s economic growth forecast. Further, it added that the Indian economy is vulnerable to external shocks. 

It recommended India tighten its monetary policy to bring the high inflation in control. It further added that the world is currently on the brink of facing a recession. There will be slow growth in global economic expansion. 

However, the fact is that despite all these obstacles and problems, India will still manage to become one of the fastest-growing economies in the world. Saudi Arabia is the only country expected to outpace the growth of the Indian economy this year. Most countries, including the United Kingdom and China, will face slow economic growth. In short, the economy of all the countries is suffering.

The situation is grim for the entire world. The current inflation that countries are facing is the after-effect of the global pandemic. However, many experts indicated that it is short-term inflation which can be taken care of with the right measures. Not only the government but also it is high time for the citizens to be mindful about how they manage their money. To sum it up, when the world experiencing slow economic growth, the comparative growth of India is better.