Ideas of India Summit 2023: ‘India’s growth rate may decrease next year, these factors will affect’

Ideas of India 2.0: There is a possibility of some restriction on the pace of India’s economic growth rate next year. Dharmakirti Joshi, Chief Economist, CRISIL, expressed this apprehension. He said that India’s economic growth rate may slow down in the coming times. He cited the slowdown in global economies as the reason for this. Joshi said that the pace of India’s economic growth rate next year may be less than 7 percent.

The growth rate can remain so

Dharmakirti Joshi, Chief Economist, CRISIL and Surjit Singh Bhalla, Former Executive Director, IMF for India, Bangladesh, Bhutan and Sri Lanka, International Monetary Fund – India, Bangladesh, Bhutan and Sri Lanka He was talking in the Crisis in the Global Economy session of the India Summit. Said that the pace of growth of the Indian economy is going to be 7 percent in the financial year 2022-23. He said that next year this rate is expected to come down to around 6 per cent. He said that the economies of the world are slowing down and its effect ie spillover is going to be on India as well.

These challenges came last year

In fact, the last year was full of difficulties in terms of inflation and various challenges. Many big economies of America and Europe faced the highest inflation in decades. After Russia’s attack on Ukraine in February 2022, a serious crisis of food and drink has arisen in many parts of the world.

There will be more impact on these sectors

The chief economist of CRISIL also mentioned this factor. He said that in general, a period of economic slowdown can be seen in developed countries. To control inflation in America and Europe, interest rates have been increased rapidly. Due to this, there is a danger of slowdown over these economies. This slowdown will reach us through exports. Sectors dependent on service exports are going to suffer the most.

break expected on repo rate hike

Talking about India, Joshi, Chief Economist of CRISIL, believes that now the period of raising the repo rate means that the interest rates of loans should be expensive. Citing inflation, Joshi told how the repo rate is helpful in controlling it. Along with this, he also added that till now the Reserve Bank has increased the interest rates to a sufficient extent and now it is expected to brake on the pace of increasing it.

Quality of labor will become a problem

He expressed concern over the problem of shortage of quality labor in India. He said, half of India’s labor force has less than secondary school education. They don’t have any skill, that’s why I think economy can’t be boosted with such quality skill. Labor will become a problem. The capital will be there, reforms will bring efficiency, but the quality of labor will remain a problem, which needs to be addressed.


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