Mumbai: The United Nations (UN) predicted that India’s Gross Domestic Product (GDP) will grow at 6.5% in the in fiscal year 2022. This growth rate is a contraction from the estimated growth of 8.4% in fiscal year 2021. GDP growth is projected to further slow down to 5.9% in the financial year 2023. United Nations World Economic Situation and Prospects (WESP) 2022 report has revealed this.
As per the report, on a calendar year basis, India’s GDP is projected to expand by 6.7% in 2022 after a 9% expansion in calendar year 2021. GDP growth for the country is forecast to slow down to 6.1% in calendar year 2023.
The report said that India’s recovery is on a solid path amid rapid vaccination progress, coal shortages and high oil prices could put the brakes on economic activity in the near term. But the country is in a better position to navigate financial turbulence compared to its situation during the ‘taper tantrum’ episode after the 2008-2009 global financial crisis. This is due to a stronger external position and measures to minimize risks to bank balance sheets.
The report said that the global economic recovery is facing significant headwinds amid new waves of Covid-19 infections, persistent labour market challenges, lingering supply-chain challenges and rising inflationary pressures.