Five key trends that will affect India’s economy in 20234 min read 23 Dec 2022, 12:04 AM IST
As we enter 2023, the big question is how India will weather the global slowdown.
After two tumultuous years, finally we will be ending 2022 with some optimism. The pandemic is behind us and while the Ukraine-Russia war lingers, its reverberations have subsided as the world learns to survive with it. The Indian economy is projected to record relatively healthy gross domestic product (GDP) growth of 6.9% in 2022-23 and inflation has started moderating. Corporate balance sheets are in good shape, with deleveraging over the last few years and banking sector non-performing assets having fallen. However, all is still not okay. Our problem of twin deficits has raised its ugly head again, with the current account deficit estimated at 3.6% of GDP and fiscal deficit budgeted at 6.4% of GDP in 2022-23. India is feeling the pinch of a global slowdown, with exports showing weakness. Hence, as we enter 2023, the big question is how India will weather the global slowdown. Here are five themes that are likely to have a significant bearing.