From Our Bureau
NEW DELHI: India’s government expects the economy to grow 7 percent or more this year. That’s more than double the projections for global growth, which has slowed sharply as major economies stall, says The New York Times.
It says the rapid expansion partly reflects the depths to which the economy had fallen during the most devastating shocks of the pandemic, which forced an exodus of laborers from cities. It also reflects the nature of India’s economy, which is partially insulated from global trends because it is driven more by local demand than exports.
Many also credit a suite of government policies — including increased public investment, relief to debtors and credit guarantees — which have helped keep inflation relatively in check and cushion the public from economic shocks. And discounted oil from Russia, against the wishes of Western allies, have helped buffer rising energy prices.
Data: India’s economy is now the fifth largest economy in the world. It surpassed Britain, its former colonizer.
Challenges: India’s economy remains unable to create enough jobs for the waves of educated young people who enter the labor force each year, and its growth remains top-heavy, analysts said. Growth is projected to slow next year to about 6 per cent.
