The Indian economy is constantly growing above the pre-pandemic level showing its strong resilience during the post-pandemic and geopolitical developments, according to the PHD Chamber of Commerce and Industry.
The industry body said that according to the recent IMF data, India recovered significantly from (-) 5.8 per cent GDP growth in 2020 to 9.1 per cent in 2021 and 6.8 per cent in 2022 with a projected growth rate of 5.9 per cent in 2023.
“The growth rates for 2021 and 2022 (average) are significantly above the growth rate of 3.9 per cent posted in pre-pandemic year 2019,” it said.
Saket Dalmia, president of PHD Chamber of Commerce and Industry, said, “India has proven its reliance not only by sharply recovering from the pandemic years but also consistently growing more than 6 per cent (average) in the post-pandemic years. India’s growth rates for 2023-2028 are significantly above the top-10 leading economies and overall world economic growth.”
Dalmia added that the growth projections for 2023 to 2028 are also at the highest as compared with the top-10 leading economies.
“The recovery process of many of the economies has been impacted by the post-pandemic geopolitical conflict between Russia and Ukraine, skyrocketed commodity prices, high inflation trajectory and synchronized move by the central banks in increasing the interest rates,” said Dalmia.
World economic growth recovered sharply in 2021 at 6.2 per cent from a low of (-) 2.8 per cent in 2020. However, world economic growth again decelerated to 3.4 per cent in 2022 and is projected to decelerate further at 2.8 per cent in 2023.
“In 2023, among the top-10 leading economies, eight economies including the US, China, Germany, the UK, France, Canada, Italy and Brazil, will perform below their GDP growth rates of the pre-pandemic level of 2019,” he added.
According to the IMF data, India’s growth trajectory is significantly strong as economic growth will be above 6 per cent in 2023-2028. China will be growing less than at 5 per cent as compared with India’s growth rate of 6 per cent during 2023-2028.
Going ahead, continued economic reforms in India would further strengthen the economic fundamentals of the country to maintain a steady economic growth trajectory in the coming months, said Dalmia.
Strengthening India’s connectivity with global value chains (GVCs) will help improve supply-side bottlenecks and reduce the costs of doing business, said Dalmia. Enhanced competitiveness of the Indian economy will attract more and more investments and help to create more employment opportunities for the growing young population in the country, said Dalmia.
However, the industry needs a great hand-holding in such a difficult environment caused by global economic uncertainties and volatile inflationary conditions, said Dalmia.
“We need to focus more on the manufacturing sector as the high cost of borrowings, and high prices of raw materials have impacted the price-cost margins of the producers. Reduced cost of doing business such as easier compliances and a robust single-window system will enhance ease of doing business in the country,” said Dalmia.
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