{"id":265034,"date":"2023-10-18T20:16:55","date_gmt":"2023-10-18T14:46:55","guid":{"rendered":"https:\/\/forumias.com\/blog\/?p=265034"},"modified":"2023-10-18T20:18:52","modified_gmt":"2023-10-18T14:48:52","slug":"the-world-economy-is-slowing-even-as-indias-provides-hope","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/the-world-economy-is-slowing-even-as-indias-provides-hope\/","title":{"rendered":"The world economy is slowing even as India’s provides hope"},"content":{"rendered":"\n

Source:<\/strong> The post is based on the article \u201cThe world economy is slowing even as India’s provides hope<\/strong>\u201d published in \u201cLive mint\u201d<\/strong> on 18th October 2023.<\/p>\n

Syllabus:<\/strong> GS3- Economy- economic growth<\/p>\n

News:<\/strong> The IMF reports a global economic slowdown, but India is growing fast. India aims to be a developed nation by 2047, needing a 7.6% growth rate. Global slowdowns may challenge India’s growth. However, with strategies like higher savings and increased exports, India can continue its growth momentum.<\/p>\n

What is current global economic trend?<\/strong><\/h2>\n

Global Momentum Loss:<\/strong> The IMF has assessed that there’s a loss of global economic momentum.<\/p>\n

Historic Low for 2028:<\/strong> The growth forecast by the IMF for 2028 is its lowest since 1990.<\/p>\n

Overly Optimistic Forecasts<\/strong>: Historically, the IMF’s forecasting models have tended to be overly optimistic. The real global growth has been lower than IMF’s predictions made five years prior.<\/p>\n

Private Sector Consensus:<\/strong> Private sector economists have also generally forecasted optimistically, mirroring the IMF’s trend.<\/p>\n

Decade’s Trend:<\/strong> The global economy has been gradually slowing down since the financial crisis, and this trend is not expected to reverse in this decade.<\/p>\n

How is India defying the economic growth trend?<\/strong><\/h2>\n

Standout Growth:<\/strong> While most countries are experiencing a slowdown, India is a rare exception, showing strong economic momentum.<\/p>\n

Fastest-growing Large Economy:<\/strong> If IMF forecasts are accurate, India could be the fastest-growing large economy for 15 years, starting from 2014.<\/p>\n

Significant Global Contribution:<\/strong> The global economy will add $29 trillion between 2023 and 2028. India will contribute $2.2 trillion, making it the third-largest contributor after the US and China, each adding $5.9 trillion.<\/p>\n

Future Acceleration:<\/strong> Barclays economists believe India can accelerate its growth after the 2024 elections without jeopardizing macroeconomic stability.<\/p>\n

Foreign Policy Tool:<\/strong> An 8% growth rate for India is viewed as a powerful foreign policy tool, strengthening its position on the global stage.<\/p>\n

What does India need to become developed by 2047?<\/strong><\/h2>\n

Required Growth Rate:<\/strong> India needs to grow at a compounded rate of 7.6% annually to reach developed country status by 2047.<\/p>\n

Challenges from the Global Slowdown:<\/strong> With the IMF forecasting a broad global slowdown in the next five years, India will face headwinds that could impact its economic acceleration.<\/p>\n

Other Hurdles:<\/strong> Besides the global economic challenges, India needs to tackle growing protectionism tied to geopolitical situations and address potential shocks from climate change.<\/p>\n

RBI’s Estimation:<\/strong> The Reserve Bank of India suggests that India’s current growth might cause inflation or stress in the balance of payments.<\/p>\n","protected":false},"excerpt":{"rendered":"

Source: The post is based on the article \u201cThe world economy is slowing even as India’s provides hope\u201d published in \u201cLive mint\u201d on 18th October 2023. Syllabus: GS3- Economy- economic growth News: The IMF reports a global economic slowdown, but India is growing fast. India aims to be a developed nation by 2047, needing a… Continue reading The world economy is slowing even as India’s provides hope<\/span><\/a><\/p>\n","protected":false},"author":10320,"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":[216,8184,10501],"class_list":["post-265034","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","tag-indian-economy","tag-live-mint","entry"],"jetpack_featured_media_url":"","views":{"total":16,"cached_at":"","cached_date":1698183792},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/265034","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\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=265034"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/265034\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=265034"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=265034"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=265034"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}