India not only manages to avoid a prolonged inflationary scenario and the consequent economic crisis that looms over many countries, but is also on track to become the fastest growing economy in the world, says the Reserve Bank of India ( RBI). However, the entity does not specify when it will occur.
While it is inevitable that geopolitical tensions and their impact on many sectors will slow the pace of India’s recovery, the economic revival and planting season is helping to raise expectations that rural demand and urban spending will catch up, Ultimately, it will allow this recovery to consolidate, the central bank said in a statement published by The Economic Times.
As for inflation in India, which has risen above 7%, the RBI says the worst may be over. However, for this to happen, the moderation in the prices of raw materials in recent weeks must be maintained over time, as well as the relief of pressure on the supply chain.
Regarding the high prices of crude oil and its impact on India’s current account deficit (CAD), the entity considers that it will widen to 2.3% of GDP this year and the next, assuming that the oil reaches 105 dollars per barrel on average. A percentage that would increase by 0.5% if the price of crude oil exceeds 120 dollars. In any case, the Reserve Bank of India stresses that it would remain “within the sustainable limit of 3%”.
It is not the only first place that is about to conquer India. According to data from the United Nations, this country will dethrone China and become the most populous on Earth in 2023.
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