India expects to achieve the world’s highest growth rate for large economies in the 2022-2023 fiscal year, despite the slowdown, according to an official report published on Monday, reflecting progress in COVID-19 vaccination and export vitality.
According to this government report submitted to Parliament, the GDP growth of Asia’s third largest economy will be 8 to 8.5% in the 2022-23 fiscal year compared to 9.2% for the current fiscal year ending in March.
“The economy is well positioned to experience strong growth in the next two years, and all indicators of macroeconomic stability point to significant support,” said Sanjeev Sanyal, chief economic adviser to the Ministry of Finance.
Thus, India will be far ahead of other large economies, according to the International Monetary Fund’s forecast for 2022, which is betting on 4.8% growth for neighboring China.
Last week, the International Monetary Fund revised its global growth forecast, due to the Omicron effect, but forecast 9% growth for India in 2022.
Now significantly expanded vaccination coverage, robust growth in exports and recovery in private sector investment, as well as increased public spending, are the factors supporting India’s growth, according to a government report.
All this, however, “provided that there are no new economic disruptions associated with the epidemic,” the document specifies.
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