As far as India is concerned, I do not see the prospect of recession as defined in the west, in the US, or even as understood in context of developing countries, the CEA said
Despite the sequential decline in Q4 growth, Chief Economic Adviser V Anantha Nageswaran on Tuesday said he does not see a prospect of recession in India in FY23, adding that India is in “better place than many other nations.”
“Recovery has been consolidated. Pre-pandemic levels of activity have been captured in several sectors. India is in a better place than many other nations and financial sector is in far better shape to support growth,” Nageswaran said.
“As far as India is concerned, I do not see the prospect of recession as defined in the west, in the US, or even as understood in context of developing countries… I do not see a recession for the Indian economy for 2022-23,” he added.
The CEA stated that the Central Government is “proactive in countering inflation pressures.”
“RBI raised repo rate. We have record foodgrain productions, states set up price stabilization funds, reduction of petrol-diesel prices, subsidy in cylinders, export duties imposed on steel and iron core,” he said.
“India isn’t an island with respect to inflation. It is global today. Germany which is most anti-inflation country is experiencing inflation at unprecedented levels. In UK, inflation is expected to be in double digits in 2nd half of year. India at 6 per cent is much better than others… Tightening happening in central banks in developed world, possibility of commodity prices going up further due to war situation may pose challenges. There are multiple ways that could lead to growing inflation, but again, it’d be harder for other countries than it is for India,” he added.
India’s GDP is estimated to have grown by 8.7 percent in FY22 after growth slid to 4.1 percent in January-March quarter (Q4FY22), data released on May 31 by the Ministry of Statistics and Programme Implementation showed.
Growth likely slowed down in the first quarter of the calendar year 2022 because of the hit to activity from the Omicron variant-led third COVID-19 wave and the Russia-Ukraine war.
(With inputs from agencies)
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