- The global economic slowdown will be a positive for India, and its gross domestic product (GDP) is expected to grow at a rate between 7.2 per cent and 7.4 per cent this financial year, said Chief Economic Adviser Anantha Nageswaran.
- “I think global growth was going to be impacted whether or not the central banks in the developed world tightened (their monetary policy), because the high inflation rate would have reduced consumer appetite and purchasing power. And, therefore, I feel the slowdown, on balance, would be a positive thing for India, given the kind of downward pressure it exerts on the crude oil an other commodity prices, industrial metals, and food supplies in general,” said Nageswaran.
- “So far we have weathered the first six months of the (Ukraine) conflict. And I think we just continue to stay on track with whatever we have been doing in the last months, we should achieve the kind of growth rates that are now anticipated by India by the RBI and the IMF,” said Nageswaran.
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Positive impact :
- The slowdown in advanced economies is good for balance as the prices of oil and other commodities are cooling to ease domestic inflationary pressures. The government is looking at options on the fiscal side fo tame inflation.
- The government has taken several fiscal measures such as lowering import duties, lowering excise duty and also imposing conditions on exports of certain commodities , not just food items. These are all the various supply measures that the government had taken.
- Given that the bulk of the inflation acceleration happened with res food and energy commodities and, the government responded wit various measures, fiscal and otherwise and how things pan out from he: would dictate future course of action And it is difficult to go into the details right now, it all depends ow the things pan out in the coming months.
- The last monthly economic report said that things are looking good. India with consumer confidence, private investment and touch service sectors all picking up.