Indian economy performing well despite global upheavals

New Delhi: India’s economy is doing well compared to other countries, despite the shocks of huge upheavals at the international level. This is because the country’s economy is built on not one but many foundations. This has created the ability of India’s economy to withstand international shocks, said Ashima Goyal, member of the Monetary Policy Committee – MPC of the Reserve Bank of India.

Although the upheavals around the world affect the Indian industrial sector, India’s agricultural sector performs well. Goyal pointed out that while the industry was in a state of decline during the lockdown, the boost given to the digitization process boosted the economy. Due to this, the Indian economy could perform better than other countries, claims Ashima Goyal. Goyal also noted that India’s share in international exports was minimal in the earlier period, but now it is increasing.

Goyal observed that the growing demand from the country is developing the ability of the economy to meet enormous economic challenges.

After the US Federal Reserve raised interest rates, international investors shifted their investments from other countries to the United States in anticipation of higher returns. It was a big blow even to the developed and rich countries. It also affected investment in India and led to a decline in Indian foreign reserves. But during this period, there was a huge increase in investment in the country. Due to this, the Indian economy was not affected much by the withdrawal of investments by international investors. Union Finance Minister Nirmala Sitharaman had mentioned this.

When the impact of the Coronavirus pandemic and the subsequent conflict in Ukraine is affecting the global economy, economists are claiming that the economies of Asian countries are coping with these crises better than the West. Some analysts have also claimed that the potential of the Indian economy has been proven during this crisis, which will further increase the confidence of international investors in India’s economy. The results are beginning to be seen and there are signs that the inflow of Foreign Direct Investment into India is increasing again.

International financial institutions have also concluded that the Indian economy will progress at the most promising pace in the coming years.