On February 1, when the budget session was starting in India, before that the Prime Minister Narendra Modi interacts with the media. The Prime Minister has traditionally addressed the media, usually at the beginning of the Parliament session.
But this time there was something special. While the whole world was facing recession, on the other hand, when PM Modi was in front of the camera, a smile could be seen on his face. A major reason for this is the figures of the International Monetary Fund (IMF).
According to the data released by IMF, India’s economy is growing fastest even in the period of recession in the world. It has been said that in the year 2023, India’s growth rate is expected to grow at 6.1 percent. However, in the year 2021, the growth rate was 8.7 percent. At the same time, due to the Corona period, it decreased in the year 2022 and this estimate was 6.8 percent. It is clear from this data that the impact of global recession has also affected India and India’s growth rate will also come in comparison to last year.
![]("https://feeds.abplive.com/onecms/images/uploaded-images/2023/02/01/4f27b4728c10d1d072772d4f71dabed71675234223613524_original.jpg")
On the other hand, China’s growth rate is expected to increase by 5.2 percent in the year 2023. The economy of India’s neighboring country Pakistan is continuously going in a bad condition. In the year 2023 the growth rate of this country will increase by only 2 percent.
On the other hand, in the Economic Review 2022-23 released on February 1, the growth rate of the Indian economy is expected to decline to 6.5 percent in the next financial year. However, India will continue to be the fastest growing major economy in the world. The growth rate of India’s gross domestic product (GDP) is estimated to be seven percent in the current financial year (April 2022 to March 2023). Last year it was 8.7 percent.
India, like the rest of the world, has faced financial challenges from the long-running war in Europe and supply chain disruptions. The review said, ‘India has met the challenges better than most economies.’
![]("https://feeds.abplive.com/onecms/images/uploaded-images/2023/02/01/be4804fff70a2ae29364e8cee7cd71ed1675233186457524_original.jpg")
The Economic Survey states that India is the world’s third largest economy in terms of PPP (purchasing power parity) and fifth largest in terms of exchange rate.
It was said in the review, ‘‘The economy has regained almost what it had lost. What was stalled has been renewed, and what was slowed down during the pandemic and after the conflict in Europe has been reactivated.’
It indicated that the inflation situation may not be a major concern, however, the cost of debt ‘is likely to remain elevated for a prolonged period. A compounded inflation could prolong the cycle of austerity.
The review said India’s post-pandemic recovery was relatively swift, with growth supported by solid domestic demand, capital investment picking up, but estimates of further interest rate hikes by the US Federal Reserve pose challenges to the rupee are.
![]("https://feeds.abplive.com/onecms/images/uploaded-images/2023/02/01/11c06ffebde2c596e92a221affbd0b011675233529784524_original.jpg")
The current account deficit (CAD) may continue to widen as global commodity prices remain high. If the CAD increases further, the rupee may come under pressure.
According to the review, there has been a decline in the growth in the second half of the current financial year on the export front. Exports declined in the second half of the current year due to slow global growth, shrinking global trade.
The growth rate at current prices for the financial year 2023-24 is estimated to be 11 percent. The review said that India’s growth rate will be stronger than most global economies during the coming financial year. This will be due to improvement in private consumption, increased lending by banks and increased capital expenditure by companies.
The Survey says that employment has improved in India due to strong consumption, but increased private investment is needed to create more jobs.
Agriculture Sector strong with 4.6 per cent annual growth
![]("https://feeds.abplive.com/onecms/images/uploaded-images/2023/02/01/ca3a732b97b5a6a47ff2ccd04dbfeb4d1675233332853524_original.jpg")
The Economic Survey states that the agriculture sector has been showing strong growth for the last six years at an average annual growth rate of 4.6 percent. With this, the agriculture and allied activities sector was able to make a significant contribution to the overall progress, development and food security of the country. Also in recent years the country has emerged as a net exporter of agricultural products and exports are expected to reach a record level of USD 50.2 billion in the year 2021-22.
