Indian economy remains resilient despite global headwinds

The Indian economy grew 8.7 percent last fiscal year after contracting 6.6 percent the previous year

A recent poll of 10 economists revealed that the Indian economy likely grew 14.4 percent in the first quarter of the current fiscal year. mikecphoto/Shutterstock

Reuters reported that despite global headwinds and inflation, India’s economy has remained resilient. The Reserve Bank of India (RBI) said that this puts the country on the path to becoming the world’s fastest-growing economy. 

The first-quarter GDP growth estimate from the RBI is 16.2 percent while the fiscal year GDP growth projection is 7.2 percent.

“In spite of this overwhelming shock, there are sparks in the wind that ignite the innate strength of the economy and set it on course to becoming the fastest growing economy in the world, though besieged it might be by fears of recession,” said the firm.

It also said that if commodity price moderation endured supply chain pressures, it will surpass the worst of the inflation, which remained at above seven percent – way beyond what the central bank can tolerate. 

More: India’s FY22 GDP grows 8.7%

Meanwhile, according to NR Bhanumurthy, eminent economist and BR Ambedkar School of Economics (BASE) Vice-Chancellor, the Indian economy has the potential to grow seven to 7.8 percent this fiscal year. Bhanumurthy said that this will be supported by better agricultural production and a renewed rural economy. This number was seconded by Nagesh Kumar, eminent economist and Institute for Studies in Industrial Development (ISID) director.

Bhanumurthy comments on high inflation, saying that there was a sudden spurt in CPI inflation due to the rise in global fuel prices as well as other commodity prices, which was, again, a sentiment shared by Kumar. The latter added that stagflation will not be a likely issue.

A recent poll of 10 economists revealed that the Indian economy likely grew 14.4 percent in the first quarter of the current fiscal year. The first quarter GDP will be announced on 31 August.

The Indian economy grew 8.7 percent last fiscal year after contracting 6.6 percent the previous year, reported The Economic Times.

The Property Report editors wrote this article. For more information, email: [email protected].

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