India’s annual GDP growth 7% plus is the continuation of an ongoing acceleration. The question is whether this can last.
One country stands out from the gloomy overall tone of the International Monetary Fund’s (IMF) recent update of its World Economic Outlook. Against the backdrop of tepid 3.2% global growth in 2022, the IMF expects India’s gross domestic product (GDP) to expand by 7.4%. This is the fastest growth of any large economy except Saudi Arabia, which is the incidental beneficiary of upward pressure on global oil prices from Russian President Vladimir Putin’s war against Ukraine. India may be buying Russian crude oil at a discount, but, as the world’s third-largest oil importer, it is still burdened by high oil prices.