Global upheavals will not affect India's development

New Delhi: Crises like flaring inflation at the global level, conflict in Ukraine and tensions in the Taiwan Strait have encircled the global economy. Simultaneously, the economies of all the major countries, including the US and China, have declined due to a disrupted supply chain. Even in such a situation, the global developments will not affect the economy of India in the next two years, claimed Moody’s, an international investment credit rating organisation. But Indian analysts respond cautiously, saying that India will also have to bear the impact of the decline of major countries’ economies. The ongoing global economic downturn will not peculiarly impact India.

India’s economy will progress at a growth rate of around 7.6% in the fiscal year 2022-23. Moody’s has claimed that the Indian economy will move at a growth rate of 6.3% in the financial year 2023-24. Moody’s, which previously had a negative inclination toward investment in India, has revised its ratings on investment in India after a few months and seems to show more confidence in the Indian economy. India’s economy is not dependent on one or two sectors.

The various supports of the economy are a great strength of India. Hence, it has been reported that the conflict in Ukraine and global inflation will not affect the Indian economy. Moody’s concludes that India’s economy can deal with these issues. Nevertheless, Indian analysts have expressed anxiety that the global economic downturn and uncertainty will affect the country’s exports. Due to financial crises, the economies of developed countries have also started to decline. At such a time, the demand from these countries has also decreased. Analysts pointed out that this matter has affected India’s exports, as indicated in August. A decline of 1.15% was recorded in India’s merchandise exports in August. Analysts warned that this trend would increase anxiety.

Meanwhile, the US newspaper, The New York Times, noted that while the economies of all the major countries, including the US and China, have been declining, India’s economy has been developing. India’s economy does not solely base on exports, as India has a huge domestic demand. Therefore, India will not face the problems faced by other export-dependent economies. At the same time, this US newspaper has claimed that the welfare policies adopted by the government of India have given relief to the people to a great extent, and its good effect is on the economic performance of the country.