According to a study by the Progress, Harmony, and Development (PHD) Research Bureau of the PHD Chamber of Commerce and Industry (PHDCCI), India is outpacing its pre-pandemic levels of gross domestic product (GDP) growth and demonstrating strong resilience amidst the pandemic’s aftermath and ongoing geopolitical developments. A respectable 5.9% growth rate was predicted by the industry group for 2023.
India has made an impressive recovery, according to recent International Monetary Fund (IMF) figures, with GDP growth returning from a decline of 5.8% in 2020 to increases of 9.1% in 2021 and 6.8% in 2022. The PHDCCI reported that the growth rates for 2021 and 2022 greatly outpace the 3.9% increase seen in the pre-pandemic year of 2019, the press release.
“India not only recovered from the pandemic quickly, but it also sustained a steady growth rate of over 6% in the years following the outbreak. According to Saket Dalmia, president of the PHDCCI, “India’s projected growth rates for 2023-2028 significantly outstrip those of the top 10 global economies and overall world economic growth.”
In comparison to the top 10 global economies, Dalmia observed that India’s growth predictions from 2023 to 2028 are likewise the greatest. Geopolitical tensions between Russia and Ukraine, surging commodity prices, soaring inflation, and the coordinated attempt by central banks to raise interest rates, however, have all impeded the recovery paths of various economies.
While the rate of global economic growth sharply recovered to 6.2% in From a decline of 2.8% in 2020 to a decline of 3.4% in 2022, it slowed further to 2.8% in 2023, according to projections.
The US, China, Germany, the UK, France, Canada, Italy, and Brazil are predicted to underperform their pre-pandemic GDP growth rates of 2019 in 2023, ranking among the top 10 global economies.
“IMF estimates show that India’s growth trajectory is very strong, with GDP growth anticipated to exceed 6% from 2023 to 2028. China’s growth rate at this time will be less than 5%, which is lower than India’s, continued Dalmia.
Dalmia stressed the necessity of continuing India’s economic reforms to strengthen the nation’s economic foundation and guarantee sustainable growth. trajectory. Additionally, he made the point that improving India’s participation in global value chains (GVCs) might reduce supply-side bottlenecks and business expenses.
However, Dalmia emphasised the need for support for sectors of the economy that are battling inflation and an uncertain global economy. He also emphasised the importance of paying attention to the industrial sector, which has been negatively affected by high borrowing rates and rising raw material prices. He argued that streamlining business procedures will make it easier to conduct business in India by lowering compliance requirements and putting in place a strong single window system.
