India’s annual economic growth may slow down to around 6 per cent for a few years. According to Bloomberg’s report, economists at Goldman Sachs Group Inc. and Barclays Plc have told that this is not a bad thing.
India’s annual economic growth may slow down to around 6 per cent for a few years.
India’s annual economic growth may slow down to around 6 per cent for a few years. According to Bloomberg’s report, economists at Goldman Sachs Group Inc. and Barclays Plc have told that this is not a bad thing. The report said that a 6 per cent GDP growth for Asia’s third largest economy would help bring inflation back to the Reserve Bank of India’s target and reduce the budget and current account deficit.
It will also help in meeting the target of fiscal deficit.
Since the beginning of 2022, inflation has been higher than the RBI’s target of 2 percent to 6 percent. And the central bank will have to bring it down to 4 per cent by the year 2024. Shantanu Sengupta of Goldman Sachs says that it would be good for India to slow down in the pace of growth. He expressed hope that the pace of growth in GDP could come down from around 7.1 per cent in the year ending March to 6 per cent in the next financial year. He had said last week that this would also solve the problems of budget and current account deficit.
According to the report, India may lose its title of being the fastest growing in the world, as the cost of debt may affect demand. To control inflation, the policy rate has been increased by 190 basis points since May and has returned to the pre-epidemic level.
The pace of GDP growth decreased
GDP grew at a rate of 6.2 per cent in the three months till September. It has slowed down from 13.51 per cent in the April-June period. Bloomberg has conducted a survey of economists before the GDP data came on Wednesday, in which all these things have come to the fore.
On this, Saugata Bhattacharya, Chief Economist, Axis Bank Limited, said that with slow growth in India, there will be a big slowdown in the world as well. According to him, this weak demand will help in controlling the current account deficit and bring inflation down to the right level.
Let us tell you that S&P Global Ratings has reduced the country’s economic growth forecast on Monday. The ratings agency has reduced the GDP growth forecast for FY2023 by 30 basis points to 7 percent.
Source: www.tv9hindi.com”