India showing resilience in economic recovery efforts

Last updated on October 26th, 2022 at 10:17 am

Over the past few months, countries across the world are working towards overcoming the unprecedented impact of the COVID-19 pandemic. Amid the ongoing circumstances, Russia’s invasion on Ukraine has brought additional threats to the global efforts to recover from the pandemic repercussions. As a result of the geopolitical tensions due to the Russia-Ukraine conflict and disrupting global supply chains, international market is witnessing a steep surge in the price of several essential commodities including wheat, sunflower oil, corn, and palm oil crude.

The rising prices of the commodities, in particular oil, in the international market has sent the Indian government budget into crisis after massive disruption by the pandemic-induced lockdown in several parts of the country.

Tackling inflation with resilience

However, India is showing remarkable resilience in the efforts to tackle the economic impact of the crisis, thanks to structural robustness and sustained trade and investment among other factors. As consumer price-based inflation (CPI) increasing at an unprecedented rate in recent months, Indian economy is on a recovery path as reflected by various parameters.

According to Equity Intelligence India, the Indian economy is standing firm despite global headwinds in terms of rising exports, healthy government finance, revival of manufacturing, formalisation, vibrant start-up ecosystem, strong housing cycle, technology adaptation and right environmental awareness.

Even as the Russia-Ukraine conflict continues to loom risks on the prospects of consumption-driven economic growth worldwide, India’s services and manufacturing activity is seeing steady rise in recent months along with growth in industrial factory output, a Bloomberg report pointed out. Furthermore, according to the Coal Ministry, Coal India achieved its highest production of 534.7 lakh tons during April 2022, indicating a 6.02 percent growth, with the aim of mitigating power crisis in the country.

According to a recent UN report, India is predicted to grow at 6.5 per cent in fiscal year 2022, with the country’s economic recovery moving on a solid path.

Fostering startup ecosystem

India’s startup ecosystem is increasingly attracting massive capital from various part of the world, facilitated by the creation of 14 unicorns in the first three months of the year. These startups invited USD 10 billion in investment across 334 funding deals to the Indian economy.

Continuous diplomatic alliances

Furthermore, PM Modi’s recent trip to European nations has enhanced India’s diplomatic stature in the international order, confirming that the robust economy will not be paraded around by US domination against Russia and China.

Meanwhile, India continue to engage in bilateral agreements with countries in the European Union, Asia Pacific region and the Middle East to boost its diplomatic areas of interests. India is demonstrating effective act of balancing its energy needs between the US and Russia while holding on to long-term ties with the economic superpowers.