How Indian economy will be next year..!? IMF forecast..!

Sowmiya Sriram
How indian economy will be next year..!? IMF forecast..!

The international Monetary Fund has estimated that India's economic growth rate will grow to 6.1% in the fiscal year 2024. It has also predicted that it will grow to 6.8% in the current fiscal year. Crude oil prices are also at their peak amidst the current international tension. Amidst many factors such as the critical financial situation, indian economic growth is expected to grow gradually for the next 2 years. The impact of Corona is also increasing in order to have an impact on further development. Due to this, the economy is expected to be affected.
However, the worrisome thing is that experts expect that inflation may be higher than economic growth in the current financial year. Although the indian economy is expected to grow by 6.8% in the current financial year, experts predict that the inflation rate in the current year will be 6.9%. Amidst the conflict between russia and Ukraine, sanctions have been imposed on Russia. This is also expected to have an impact on the indian economy. In particular, commodity prices may increase, prices of crude oil, cooking oil, grains, etc. may peak, and it is expected that this may further trigger inflation in India.
This can reduce consumer confidence. However, india is expected to grow at 6% in the medium term and 7% in 2023. However, the government of india is constantly taking steps to improve infrastructure facilities. This may encourage further capital investments. Meanwhile, private demand is also expected to pick up.
As inflation in india is already peaking, rising fuel and commodity prices may further fuel inflation. Inflation is already above the RBI's target. The RBI, which has already taken a number of measures this year, may further increase India's current account deficit to 3.5% by 2023. It was 1.7% last year. This has been fueled by rising inflation, increased demand, and increased imports. Credit growth is also expected to pick up. This may lead to economic growth in the medium term.

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