Pic: Shutterstock/Frederic Muller
Recent International Monetary Fund (IMF) data reveals India’s impressive recovery, with GDP growth rebounding from a decrease of 5.8 per cent in 2020 to an increase of 9.1 per cent in 2021, and 6.8 per cent in 2022. The growth rates for 2021 and 2022 significantly surpass the 3.9 per cent increase observed in the pre-pandemic year of 2019, the PHDCCI stated in a press release.
“Not only has India rapidly bounced back from the pandemic, but it has also maintained a steady growth rate of over 6 per cent in the post-pandemic years. India’s projected growth rates for 2023-2028 significantly outstrip those of the top 10 global economies and overall world economic growth,” commented Saket Dalmia, president of the PHDCCI.
Dalmia noted that India’s growth projections from 2023 to 2028 are also the highest when compared to the top 10 global economies. However, the recovery trajectories of numerous economies have been hampered by geopolitical tensions between Russia and Ukraine, skyrocketing commodity prices, high inflation, and the coordinated move by central banks to hike interest rates.
While global economic growth saw a sharp recovery of 6.2 per cent in 2021 from a decrease of 2.8 per cent in 2020, it decelerated to 3.4 per cent in 2022 and is projected to further slow to 2.8 per cent in 2023.
In 2023, out of the top 10 global economies, the US, China, Germany, the UK, France, Canada, Italy, and Brazil are expected to underperform their pre-pandemic GDP growth rates of 2019.
“According to IMF data, India’s growth trajectory is significantly robust with economic growth projected to be above 6 per cent from 2023 to 2028. During this period, China’s growth rate will be under 5 per cent, which is lower than India’s,” added Dalmia.
Dalmia emphasised the need for ongoing economic reforms in India to bolster the country’s economic fundamentals and ensure a steady growth trajectory. He also pointed out that strengthening India’s integration with Global Value Chains (GVCs) could mitigate supply-side bottlenecks and lower business costs.
However, Dalmia stressed the need for support for industries grappling with the volatile global economic climate and inflation. He also highlighted the need for a focus on the manufacturing sector, which has been impacted by high borrowing costs and raw material prices. He suggested that streamlining business practices, such as easing compliances and implementing a robust Single Window System, would enhance the ease of doing business in India.
Fibre2Fashion News Desk (NB)