Source: The post is based on an article “Through a 40-year prism: India’s record creditable, but not outstanding” published in Business Standard on 15th October 2022.
Syllabus: GS 3 – Economic Development
News: The International Monetary Fund (IMF) has come up with World Economic Outlook (WEO) report 2022.
What does the World Economic Outlook (WEO) report say?
Performance of India in the Previous Decades
The comparative economic growth of the report shows that four countries are the best performers for 2011-21 decade. Four countries are – Bangladesh, China, Vietnam and India from top to bottom.
China and Vietnam were also featured as the top performers for the previous decade.
Further, India recorded best ever decadal growth performance in 2001-11. But its growth was slower than all emerging markets and developing countries in that decade.
In the previous two decades, 1991-2001 and 1981-91 India performed better than the average emerging markets (EMs).
In terms of dollars, the Indian economy grew to 3.7 times its size in the 2001-11 decade but only to 1.7 times in the latest decade.
Further, the IMF report for four decades (1981-2021) highlights that only three countries (China, South Korea and Vietnam) did significantly better than India.
It also highlights that India has significantly increased its GDP – 1.1% (1981-91), 2.5% (2011), 3.3% (2021) and it is further expected to grow in the future.
Growth projections by the report
The Indian economy is set to grow 6.8 per cent whereas all EMs are expected to grow only 3.7 per cent in 2022-23.
The growth for the advanced economies is expected to slow from 2.4 per cent to 1.1 per cent in the next year.
4 Asian Countries including India, are the candidates for international businesses looking to diversify their production bases away from China by following “China+1” strategy.
Therefore, these data by the IMF reflects India’s better position in the world even if the growth remain less than the expected for the year 2022-23.
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