Indian economy will grow at the fastest pace in the world, the global growth rate may remain 4.4 percent in the current financial year
The Indian economy is projected to grow at the fastest pace in the world for the next two years. It may grow at 9 per cent in 2022-23 and 7.1 per cent in 2023-24. The International Monetary Fund (IMF) said on the global GDP growth forecast, the global growth rate is likely to be 4.4 percent in 2022-23 and 3.8 percent in 2023-24. The growth rate of developed countries can be 3.9 percent and 2.6 percent. The growth rate of emerging and developing countries is expected to be 4.8 per cent and 4.7 per cent respectively. The US economy can grow at 4 per cent and 2.6 per cent. The growth rate of the euro zone is estimated to be between 3.9 and 2.5 percent.
Growth rate may be 9.0 percent in 2022-23
Growth rate may remain 7.1 percent in 2023-24
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World Bank 8.7 8.0
Reserve Bank 7.8 7.2
City Group 8.3 8.0
Morgan Stanley 8.4 7.9
Fitch Rating 10.3 8.5
Ukraine war will have an impact on the growth rate
The Asian Development Bank estimates that India's growth rate may be 7.5 percent in 2022-23 and 8 percent in 2023-24. During this period, China's growth rate is estimated to be between five percent and 4.3 percent. However, India's growth rate could have accelerated further in 2022-23. However, due to the war between Russia and Ukraine, it is expected to have little impact.
India capable of fighting challenges: RBI
There are challenges before India regarding the ongoing crisis at the global level. But it is meeting these challenges well with large-scale vaccination, strengthening the financial sector and better exports. RBI has said in an article that India has entered the new era by overcoming the third wave of Corona. Economic activity is booming in many areas. According to this, it will be important to encourage private investment to keep the growth at a high level for a long time in the times to come. According to the article, external exposure to capital outflows from foreign investors, coupled with rising trade and current account deficits, also poses risks.
Banks are rapidly implementing monetary policy announcements
Banks are increasingly implementing monetary policy announcements. This has picked up especially after the adoption of the External Standard Linked Lending Rate (EBLR) regime in October 2019. The internal benchmark based lending rate regimes faced a number of issues. There were also MCLR cases in this.