Every second Headline mentions Recession, whereas India has emerged as a bright spot expected as Driver of Global Economy. Agencies like International Monetary Fund (IMF) says- “India a bright spot in world economy and retains growth rate at 6.8%”. World Bank Endorse India.*
Where Global Economy is slumping?
- War in Ukraine has hit European Economies.
- US. Government staring at a shutdown over debt ceiling.
- China economy under strain due to the Pandemic
- Japan’s economy shrinks for the first time in years.
Here is the projection for India:
World Bank Says - Indian economy has demonstrated resilience despite a challenging external environment.
What makes India Standout?
- Strong Pandemic recovery
- Economic activity resumed and remains largely un-interrupted.
- India private or household (domestic) consumption makes up 60% of the GDP. In other words, the money which we spent drives the growth and this spending is on rise.
- Dec ‘22 alone in India saw GST collection jump by 15% YOY and clock around $18.07 billion.
What other factors are driving the growth?
- Last year Apple started manufacturing its products in India.
- Samsung (another smartphone giant) manufactured 120 million units in India .
- Tech giant Google is considering India as next hub.
- Semiconductors manufacturing industry like Foxconn has joined hand with Vedanta and wants to setup a semiconductor plants in India.
- India is emerging as go to destination for global businesses. Many companies are lured by government subsidies encouraging manufacturing in 14 key industries including - electronics, drugs, drones, EV etc.
Morgan Stanley (an investment management company) says - India is on track to become the world’s third largest economy by 2027.**
So friends, are you still worried about the Recession or Layoff, Indians need to change their perspective to being optimistic and utilizing their time in learning and improvising our skills. Let’s broaden our thoughts and be the part of the Growth to take India to newer heights.