{"id":207602,"date":"2022-09-24T20:50:12","date_gmt":"2022-09-24T15:20:12","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=207602"},"modified":"2022-09-26T15:03:21","modified_gmt":"2022-09-26T09:33:21","slug":"external-risk-factors-for-the-indian-economy-global-storm-overseas-risk-is-main-policy-challenge","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/external-risk-factors-for-the-indian-economy-global-storm-overseas-risk-is-main-policy-challenge\/","title":{"rendered":"External risk factors for the Indian economy: Global storm: Overseas risk is main policy challenge"},"content":{"rendered":"\n

Source<\/strong>: The post is based on the article\u00a0\u201cGlobal storm: Overseas risk is main policy challenge\u201d\u00a0<\/strong>published in\u00a0The Times of India\u00a0<\/b>on\u00a024th\u00a0<\/sup>September 2022<\/strong>.<\/p>\n

Syllabus<\/span><\/b>: GS 3: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.
\n<\/span><\/p>\n

Relevance<\/strong>: Indian Economy and its external challenges.<\/p>\n

News<\/strong>:\u00a0In line with major global markets, Indian financial markets were struck recently. Similarly, the rupee-dollar exchange rate has also hit a record low at Rs 80.99.<\/span><\/p>\n

What are the major external risk factors for the Indian economy?<\/h5>\n

1)<\/strong> Unclear trajectory of major central banks trying to pull back inflation. Hardening of interest rates will trigger a sharp economic slowdown in major economies, 2)<\/strong> Most currencies weakened against the dollar and Japan\u2019s central bank made its first foreign exchange market intervention in over two decades, 3)<\/strong> Inflation is unlikely to quickly go downwards even as demand falls. This is because of ongoing energy supply readjustments that have pushed economic activity and inflation in different directions.<\/p>\n\n\n\n
Read more: <\/strong>Rupee-Rouble trade will be beneficial for Indian Economy<\/strong><\/a><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
How European countries are facing economic challenges?<\/h5>\n

Europe<\/strong>: Ever since the Ukraine crisis, European gas and electricity prices have risen 105% and 75%, respectively. Further, Europe\u2019s economic activity is rapidly slowing as the energy shock undermines manufacturing.<\/p>\n

UK<\/strong>: The UK\u2019s inflation, at 9.9%, is almost five times its inflation target.<\/p>\n\n\n\n
Read more: Post-pandemic surprises and where the indian economy truly stands today<\/a><\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
What are the economic challenges for India?<\/h5>\n

Economic policymaking in India will have to factor in an abnormal global scenario. At present, there is no clear signal about the near future behaviour of either revival or price stability of the Indian Economy.<\/p>\n

RBI\u2019s monetary policy committee will have an upcoming bi-monthly meeting that has to contend with risks coming largely from overseas.<\/p>\n\n\n\n
Read more: How does the Fed\u2019s taper move impact Indian economy?<\/a><\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Source: The post is based on the article\u00a0\u201cGlobal storm: Overseas risk is main policy challenge\u201d\u00a0published in\u00a0The Times of India\u00a0on\u00a024th\u00a0September 2022. Syllabus: GS 3: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment. Relevance: Indian Economy and its external challenges. News:\u00a0In line with major global markets, Indian financial markets were struck… Continue reading External risk factors for the Indian economy: Global storm: Overseas risk is main policy challenge<\/span><\/a><\/p>\n","protected":false},"author":10311,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[216,10496],"class_list":["post-207602","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","tag-times-of-india","entry"],"jetpack_featured_media_url":"","views":{"total":2,"cached_at":"","cached_date":1702394103},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/207602","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10311"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=207602"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/207602\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=207602"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=207602"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=207602"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}