Indian Economy Growth Outlook: Due to rising oil prices and increase in fertilizer import bill, Moody’s has lowered the forecast for the growth of the Indian economy.
Indian Economy Growth Outlook: Due to rising oil prices and increase in fertilizer import bill, the government can reduce capital expenditure. Bond credit rating company Moody’s Investors Service has cut the growth forecast for the Indian economy this year due to this. According to Moody’s, the Indian economy can grow at the rate of 9.1 percent this year. Earlier this estimate was at 9.5 per cent.
Moody’s has said in its Global Macro Outlook 2022-23 (March 2022 update) that economic growth will be negatively impacted due to the war between Russia and Ukraine. Russia’s economy was also expected to increase before the attack, but now there is a possibility of a sharp decline in it. According to Moody’s, the global growth outlook may be affected due to the next wave of corona, wrong monetary policies and social risk due to high inflation.
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Agriculture sector expected to support the economy
High oil prices may jolt the Indian economy as it imports a large part of its requirement but in the short term it will benefit from agri exports as India produces more food grains than it needs. India can reduce capital expenditure due to high oil prices and increased fertilizer prices. According to Moody’s, the Indian economy can grow at the rate of 9.1 percent this year in 2022 and 5.4 percent next year. At the same time, the rating agency has estimated inflation at 6.6 percent this year. Last year in 2021, the Indian economy grew at the rate of 8.2 percent, while in the last year 2020 due to the corona epidemic, it shrank at the rate of 6.7 percent.
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Big blow to Russia’s economy
According to rating agency Moody’s, the Russian attack on Ukraine has affected the global economy in three ways – a rise in commodity prices, risks to the global economy from financial and business problems and sentiments affected by political tensions at the global level. However, Moody’s believes that only among the G20 countries, Russia’s economy may decline this year and it may shrink by 7 percent this year and 3 percent next year in 2023. Before the attack on Ukraine, Moody’s had projected Russia’s economy to grow by 2 percent this year and 1.5 percent next year. China’s economy can grow by 5.2 percent this year and 5.1 percent next year.
,Input: PTI)
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