New Delhi: Sanjeev Sanyal, a member of the Economic Advisory Council to the Prime Minister (EAC-PM), said on Sunday that India will likely have the strongest major economy in FY23, with a growth rate of 7 percent. This is despite fears that the world economy will fall into a recession.
Sanyal observed that India can grow at 9 percent in an external conducive environment like in early 2000s when the global economy was growing. "We are clearly entering an environment where many countries around the world will be facing much slower growth or even slipping into recession. "This is due to a combination of factors ranging from tighter monetary policy to higher energy costs, and also disruptions caused by the Ukraine war," he said in PTI interview.
The World Bank on October 6 projected 6.5 percent growth rate for the Indian economy for 2022-23, a deccrease of one percentage point from its June 2022 projections, citing deteriorating international environment. "Under those circumstances, India's performance will stand out as being perhaps the strongest of any major economy in the world with around 7 percent GDP growth rate in current fiscal year nonetheless," Sanyal said.
He stressed that the cumulative impact of supply side reforms over many years by the Modi government has meant that India's economy is currently much more flexible and resilient than it used to be.
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