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Amidst the ongoing serious geopolitical tension in West Asia (Middle-East) and global instability, a very wonderful and relieving news has emerged on the Indian economy front. According to the latest survey of the World Economic Forum (WEF), India has emerged as the world’s strongest and most reliable economy despite global uncertainty at this time.
Many stalwarts and chief economists of the world clearly believe that in the coming 12 months, India will become the main engine of global growth and will play a big role in taking the entire world forward.
52% economists have confidence in India, a ray of hope amid global uncertainty
The World Economic Forum report presents very positive figures regarding India’s economic condition:
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Most optimistic countries: included in the survey 52 percent chief economists strongly believes that India will see ‘very strong’ or ‘strong’ economic growth over the next 12 months. This figure makes India the most optimistic and safe compared to any other country or region in the world.
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Strong hold with America: According to the report, despite global turmoil, India and America are two countries which will maintain their strength.
5 main reasons for this stormy pace of India:
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Strong Domestic Demand: The demand for goods and services within the country remains constant.
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Heavy investment on infrastructure: Record breaking expenditure is being made by the government on the development of infrastructure (roads, highways, railways).
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Fast-paced investment: The pace of domestic and foreign direct investment (FDI) is continuously improving.
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New Trade Agreements: India is continuously signing new trade agreements with many countries globally.
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Government support measures: Government policies are proving helpful in strengthening industries and economic fronts.
Growing gap in global economy: Europe headed for recession, India and Asia strong
The WEF report also highlights the uneven pace of economic growth in different parts of the world and the growing gap between them:
What is the big challenge and warning for the Indian economy?
Even though this report gives Indians a big reason to be proud and happy, it also brings a big warning. World Economic Forum Rising inflation It has been described as the biggest challenge for India in the times to come.
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Fear of inflation: included in the survey 61 percent economists It has predicted that the inflation rate in India may remain at ‘high’ or ‘very high’ level in the coming year.
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Main reasons: The biggest reason for this is due to the West Asia crisis. Constantly increasing cost of Energy & Crude Oil Which is creating additional pressure on the Indian market and economy.
Closure of the Strait of Hormuz and global concern
The economic scenario at the global level remains quite worrying. 89 percent chief economists It is said that the global growth rate will weaken significantly in the next one year.
The real reason for the global crisis: The ongoing fierce conflict in the Middle East and the most important from a commercial point of view Strait of Hormuz Due to the closure or disruption of supply chains of energy (crude oil), food grains and fertilizers (manure) across the world, the supply chain has completely collapsed. due to this disturbance 94 percent experts There is a fear that global inflation may become more uncontrolled in the coming year.
Is a global recession coming?
The matter of relief is that despite all the adverse circumstances and geopolitical conflicts, only 13 percent of economists think that the world will fall into a complete recession (Global Recession) next year. That is, most experts are not seeing a situation like the Great Depression right now.
According to experts, the world is now entering a new era where instability will persist for a long time due to geopolitical conflicts, supply chain tensions, energy insecurity and uneven technological changes.
