- At the outset, let us sit back to reminisce how the last two-and-a-half years have turned out to be for the global community irrespective of their status in the development indices. The once-in-a-century pandemic had a devastating roleplay in not only subjugating the universe from many fronts, especially economic but also left behind such a humongous trail of destruction that we are still reeling from the aftereffects even now. None of the countries were insulated from the ravaging run of the virus and the struggles to regroup and recoup continue as we speak. When the people finally started heaving a sigh of relief, the ill-timed Russia-Ukraine conflict started largely because of the bloated ego of the Russian strongman Vladimir Putin. Double whammy!
PC: The Leaflet
- Severe supply chain disruptions caused by these two cataclysmic incidents have rendered the universe at the mercy of events beyond the means of ordinary mortals. Life has to move on and the nations have commenced all out efforts to ensure their respective citizens are insulated from any more economic ravages. Easier said than done though as many extraneous considerations dictate how an economy functions. The Indian establishment did endure tremendous challenges but succeeded enough to stay afloat as compared to some of the most advanced countries. The results are there for all to see as the Indian gross domestic product growth has overtaken a few of the advanced nations. Is that enough? Not at all. More needs to be achieved in the days ahead.
- As reported in newspapers, at a recent conference, a distinguished panel of economists and policymakers were asked to opine and predict the growth rate of the Indian economy in 2023. Would it grow at more than 7% was the question posed to the panel? Predictably, the average number turned out to be between 6-6.5% amongst those who hazarded a guess. Not bad because some of the most advanced and developed nations are struggling to average 3-5%, forget about 6-7%. Does it then make our policymakers feel extremely happy and go about the town in tomtomming the economic growth? Far from it as the skewed growth reflects some of the crucial sectors like manufacturing and industries failing to take off on expected lines.
- With the inflationary trends not showing signs of easing within the RBI-defined parameter of 6%, the focus will be on wasteful subsidies which significantly eat into the budgetary allocations. Fiscal prudence demands unyielding subsidies should be junked forthwith but the ensuing assembly elections in nine states in 2023 will force both the centre as well as states to doll out freebies. Moreover, with the new Omicros subvariant having stirred a hornet’s nest in several countries, the uncertainty still looms large as to which way the economy will move in the coming days. India has indeed done reasonably well despite facing suffocating challenges. As such, there is no way we would be stifled vis-à-vis steady but not spectacular economic growth. Fingers crossed.