'India is a bright spot for growth, aided by domestic consumption'

Gulveen Aulakh

- In an interview, Park said India should prepare for the European Union’s carbon tax on imports but should raise concerns if it makes trade prohibitive

In an interview, Park said India should prepare for the European Union’s carbon tax on imports but should raise concerns if the tax makes trade prohibitive. India should be open-minded about adopting ADB’s energy transition mechanism while adhering to its net zero emissions policy by 2070, he added. Edited excerpts:

What macroeconomic headwinds are likely to impact India the most among emerging economies in the short term?

India is going to grow fast. Our projection is 6.4% this year and 6.7% next year, but they have been downgraded over time because of growing headwinds related to high commodity prices, inflation above the central bank target rate and inflation kind of affecting consumer sentiment and spending. But relative to most countries in the region, India is a bright spot for growth on the back of domestic consumption.