India has slipped..!? What will happen in 2023..?!

Sowmiya Sriram
India has slipped..!? What will happen in 2023..?!

India's economy is said to be the fastest-growing country in the world, and the situation is expected to reverse in 2023. Goldman Sachs said that India's economic growth rate has been affected by the successive interest rate hikes announced to control the rising inflation and the positive business conditions since the corona epidemic period has disappeared. In 2023, India's GDP is projected to grow by only 5.9 percent, and in 2022, it is projected to be 6.9 percent, according to a report by a panel led by Goldman Sachs economist Andrew Tilton. In 2023, the indian economy is projected to be two-fold. This means that economic growth factors will fade away in the first track and record sluggish growth, mainly due to a sluggish first half as interest rate hikes reduce liquidity and affect domestic demand.
Goldman Sachs said India's economy grew at 8.7 percent in FY2021-22 as growth factors are expected to improve globally in the second half of the year, leading to an increase in exports and investment cycles. But it is predicted to be 6.9 percent in the calendar year 2022 and 5.9 percent in the calendar year 2023. Similarly, India's retail inflation in 2023 will be 6.1 percent. Similarly, the country's inflation rate in 2022 is 6.8 percent.
The impact of the coronavirus has decreased in the world, while the economy and trade are on the path of growth. Due to the increase in inflation due to the economic and trade impact caused by the Russia-Ukraine war, the interest rate has increased, and the economic slowdown has developed in all leading economic countries, not only India.
The retail inflation of india in the last 10 months has been below the target level of the Reserve bank of India. The RBI recently submitted an explanation to the central government as a monetary policy meeting report on why it could not control the cause of inflation, as it remains above 4-6 percent.
In October, the country's exports fell by around 16.65 percent compared to last year. Similarly, the country's exports have fallen for the first time since february 2021. With this, the country's trade deficit has increased by 50.25 percent to 26.91 billion dollars in October, according to the Ministry of Commerce.
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