‘Indian economy among fastest growing globally’

NEW DELHI: Despite global economy experiencing several challenges, including the Russia-Ukraine conflict, the slowdown in China, persistently high inflation and tightening financial conditions, India continues to be one of the fastest growing economies in the world, sources in the Finance Ministry have said.

As per the World Economic Outlook (WEO) October 2022 report of the IMF, the economies around the world were facing recessionary trends due to the aforementioned reasons.

The slowdown of global output had also made IMF lower the growth forecast for India’s economy, sources informed, adding that domestic economy was projected to grow 6.8 per cent in 2022 and 6.1 per cent in 2023.

However despite this, the government is of the opinion that India’s economy was better off than many globally.

The WEO report also said that geopolitical factors were weighing heavily on global growth, especially in advanced economies.

Owing to these unfavourable developments, the IMF had projected global growth to slow from 6 per cent in 2021 to 3.2 per cent in 2022 and 2.7 per cent in 2023.

For advanced economies, the growth was projected to decline from 5.2 per cent in 2021 to 2.4 per cent in 2022 and 1.1 per cent in 2023.

The corresponding growth for emerging market and developing economies had been projected at 3.7 percent in 2022 and 2023, down from 6.6 per cent in 2021.

Sources in the Finance Ministry said several measures had been taken to stabilise economic growth.

In the Union Budget 2021-22, increase in capex budget by 34.5 per cent over 2020-21 was announced.

The expansion of the production linked incentive (PLI) scheme to 14 sectors and introduction of Mega Investment Textile Parks (MITRA) were announced.