Unlike the global economy, India would not slow down and keep up the pace of expansion achieved in 2022-23, Reserve Bank of India article said on March 21.
"We remain optimistic about India, whatever the odds," said the article on the state of the economy published in the March edition of the Reserve Bank bulletin. The NSO's end-February data release indicates that the Indian economy is intrinsically better positioned than many parts of the world to head into a challenging year ahead, mainly because of its demonstrated resilience and its reliance on domestic drivers, RBI article read.
India has emerged from the pandemic years stronger than initially thought, with a steady accumulation of momentum since the second quarter of the current financial year, it added. This is against predictions that global economy may slow down or potentially enter a recession in 2023.
"Year-on-year growth rates do not reflect this pick-up of pace because by construction they are saddled with statistical base effects, and instead suggest a sequential slowing down through successive quarters of 2022-23 to an unsuspecting reader," said the article.
The article has been authored by a team led by RBI Deputy Governor Michael Debabrata Patra. The authors further said India's real GDP can go up from Rs 159.7 lakh crore in 2022-23 to Rs 170.9 lakh crore against the current projection of Rs 169.7 lakh crore in 2023-24.
The World Bank's experts warned in January of this year that the decline would be widespread and that any unfavourable developments ran the risk of sending the global economy into recession.
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