Slow growth is good for India..!? Why..?

Economists have predicted that India's annual economic growth will slow to around 6%. Economists from brokerage firms including Goldman Sachs Group Inc and Barclays Plc have predicted growth of 6%. India's GDP growth, the third largest economy in Asia, has expanded to 6%. The growth rate has been declining in the same decade countries. However, India's inflation continues to remain close to the Reserve Bank's target. It is expected to continue to lead to a reduction in the current account deficit. Continuously the RBI's inflation target is well above the 2-6% target. And they are trying to reduce it by 4% by 2024. For Goldman Sachs' Shantanu Sen Gupta, India's growth is good amid the slowdown. GDP is expected to contract by 7.1% in the year ending March. This is likely to come down to 6% in the next financial year. Scarcity problems can still be overcome. It refers to the current account space.The South Asian country may lose its global growth distinction. Because key rates to control inflation since May, interest rates have increased by 190 basis points since the pandemic. Due to this, borrowing costs have risen to 6.2% in the three months to september from a year ago. It has seen a growth of 13.51% in the same months of April-June. Meanwhile, according to the Plum Berg report, India's growth rate is expected to grow by 7% in the current year. The same is expected to see a growth of 6.1% in the next year. India's slow growth may coincide with a global slowdown, said Sakata Bhattacharya, chief economist at Axis bank Ltd. Low growth will help curb the current account deficit. Inflation is projected to be 6.7% this year. India's growth rate is expected to increase to 5.1% by 2024. India's growth may slip to 6.2% in the current year. So India's growth rate is okay compared to other big countries. However, amid the slowdown in the international market, among many factors such as fiscal deficit and inflation, this may reduce the current account deficit even though it may not reduce growth.

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slow growth is good for india

Sowmiya Sriram

29/11/2022 05:10 PM