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HomeUncategorizedIndia to become world's fastest growing economy, country's Reserve Bank forecasts

India to become world's fastest growing economy, country's Reserve Bank forecasts

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The authors of a recent report estimate that the strength of the Indian economy will allow the country to “escape the global inflation trap” .

On the road to economic recovery, “sparks in the wind” will help India become the world’s fastest-growing economy, forecasts the ‘State of the Economy’ report released on July 16 by India’s Reserve Bank.

“The recent revival of the monsoon, the rebound in manufacturing and services, the stabilization of inflationary pressures and strong buffers in the form of adequate international reserves, adequate stocks of grains and well-capitalized financial system, taken together, brighten the outlook and reinforce the conditions for a path of high sustainable growth in the medium term,” the document states. On the other hand, the exact moment when the country will hold the leadership in economic growth indicators was not specified.

Furthermore, the report places special emphasis on inflation and its role in the national economy. The document estimates that if the moderation in the prices of raw materials observed in recent weeks persists and the relaxation of the pressure on the supply chain, the country will be able to “escape the global inflation trap”.

The Indian economy “is showing resilience in the face of formidable global headwinds,” say the report’s authors. Pointing out that “there could be recession fears”, they add that “there are sparks in the wind that ignite the innate strength of the economy and put it on track to become the fastest growing economy in the world”.

Furthermore, the Reserve Bank underlines the important role of world population growth, forecasting that India will become the most populous country in the world by 2023.

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