Indian Economy Will Grow By 7-7.8%, Despite Global Constraints

Indian economy will grow by 7-7.8%, despite the global constraints, and the growth in agricultural production and rural development will accelerate.

Prominent economists say that the Indian economy will grow 7-7.8 percent in the current financial year, despite the global constraints caused by the Russo-Ukraine war.

An increase in agricultural production and revival in rural development will help economic growth.

NR Bhanumurthy, the leading economist and Vice-Chancellor of the BR Ambedkar School of Economics, says that the Indian economy is facing various obstacles.

External constraints are prominent in this. He said global inflation remains a challenge due to the Russo-Ukraine war, otherwise, domestic macro fundamentals are very strong.

Unlike advanced economies, India’s fiscal policy interventions such as COVID stimulus measures have been inflation-reducing and growth-promoting.

Nagesh Kumar, director of the Institute for Studies in Industrial Development, also backs Bhanumurthy, saying that higher indicators indicate strong growth, which could lead to real GDP growth in the range of 7 to 7.8 percent in FY 2022-23.

French economist Guy Sarman says India could be badly hit by high energy costs and fertilizer imports. However, India is still a largely agricultural economy.

Urban workers will be affected by the slow development and they will return to the villages. This can increase agricultural production and export of food grains.

The World Bank has reduced India’s growth forecast for the current financial year to 7.5 percent.

India’s growth rate in the financial year 2021-22 was 8.7 percent. In the previous financial year, the growth rate had fallen below zero to 6.6 percent.

Oil Imports: Russia’s oil imports from India increased 50 times, and Moscow’s share in the country’s total oil imports increased to 10 percent.

India’s oil imports from Russia have increased 50 times since April. According to a senior official, now the share of Russia in India’s total crude oil imports has increased to 10 percent.

Russia’s share of total oil imports before the Ukraine war was 0.2 percent.