BOOMING BHARAT

AS ITS ECONOMY IS PERFORMING BETTER THAN OTHER ECONOMIES OF THE WORLD, BHARAT NOW NEEDS TO FOCUS ON CHECKING INFLATION. THIS WILL INCREASE ITS GDP AS WELL AS EMPLOYMENT

- PROF ASHWANI MAHAJAN

India has now surpassed the United Kingdom’s GDP to become the world’s fifth largest economy. Although the International Monetary Fund (IMF) has cut India's GDP growth forecast by 0.8 per cent to 7.4 per cent for 2022-23 in its recent report titled 'The World Economic View: Gloomy and More Uncertain', it has also said that in comparison with other major economies such as the US and China, India will grow faster. This means that India will become the fastest growing economy among the major economies of the world.

DECLINING GROWTH IN THE US, CHINA

Due to rising inflation and slowdown, there have been talks of declining growth in the US and Chinese economy. The general opinion is that the situation may be even worse. The world reeling under the crisis of the pandemic is facing new challenges, including oil and food shortages and inflation due to the Russian-Ukraine war. Due to this, central banks around the world are raising interest rates, which will prove to be detrimental to growth.

While the lockdown in China is affecting supply chains around the world, slowing growth in the US, in the first part of 2022, declining household incomes and a contractionary monetary policy have been causing slowing demand and growth globally. According to the IMF, the world's growth is projected to be 3.2 per cent in 2022 and 2.9 per cent in 2023, which is 0.4 and 0.7 percent lower than the earlier estimates, respectively.

IMPRESSIVE GROWTH