On April 12, 2022, the RBI Governor, Bimal Jalan, said,” The Indian economy is in good shape with high a GDP rate and foreign exchange reserve this year.” The Russia – Ukraine war, affecting the global supply chain, is not going to affect the Indian economy, Jalan added in an interview.
According to government data, India, Asia’s third-largest economy, is expected to grow at an annual rate of 8.9 percent between 2021 and 2022. While developing, Asia’s economies are predicted to grow by 5.2 percent this year and 5.3 percent in 2024. Developing Asia comprises 46 countries.
Uncertainties projected in the economy because of the Russia-Ukraine war and the outbreak of COVID-19 also affected the growing economies. The war is affecting economies with the increment in the prices of commodities.
Jalan added in the interview, “Unemployment is the key issue to be foresighted. The Russia– Ukraine war is going to affect the world, no doubt. Taking about Indian export-import with Russia, which is less than 2 percent, and also having good relations with Russia overall.”
Jalan added that high inflation is the problem. Retail inflation remained at 6.07 percent in February, which is above the RBI’s level and the wholesale inflation was at 13.11 percent.
Further, Jalan stated that the foreign exchange reserve should be used for something that is going to be developed in foreign countries upon being asked if the foreign exchange reserve could be used for infrastructure development.
According to the Asian Development Outlook 2022, the Indian economy will grow by 8% next year. The increment would be the result of investment growth, both public and private. He added that India is going to maintain its position as the fastest-growing economy. The Indian economy was at 8.9 percent in March 2021.
Asian economies are growing after the pandemic. Predictions say that developing Asia’s economies will grow by 5.2 percent in the current year and 5.3 percent in 2024.
India is going all set to be a sustainable economic recovery, with its drive for vaccination reducing the third wave outburst. For the upcoming two-year, various large infrastructure projects are planned to encourage private investments. Eyes are foresighted at the milestone and the ways India achieves it.
