Top 5 Highlights Of Indian Economy In The Year 2022
The Indian economy had a rebound in 2022 after suffering through two years of the COVID-19 pandemic.
India recovered from the pandemic greater than even the most industrialized nations in the world and showed a constant rate of growth, defying all predictions about its effects.
The economy has really gotten going, and the coming year should show additional signs of growth. Here is a brief summary of some of the key moments in the Indian economy in 2022.
1. India Becomes World’s 5th Largest Economy
India surpassed the United Kingdom as the world’s fifth largest economy In September of this year. According to a Bloomberg estimate, the size of the Indian economy in terms of “nominal” currency was $854.7 billion compared to the UK’s $814 billion.
The National Statistical Office (NSO) reports that India’s gross value created (GVA), which is GDP less net product taxes and represents supply growth, increased 12.7% between April and June 2022.
India saw steady development, but the UK is currently seeing its greatest level of inflation in many years.
The Bank of England forecasts that the UK is currently experiencing a recession that might endure until 2024.
2. India Emerged As World’s 3 Largest Startup Ecosystem
With 107 unicorns (startups valued at $1 billion or more) boasting a combined valuation of $340.79 billion as of September 7, 2022, India has risen as the 3rd largest startup ecosystem in the world.
The Indian startup ecosystem has embraced 23 new members into the exclusive $1 billion valuation club as of 2022 alone.
The 13 startups became unicorns in the first three months of 2022, which was off to a terrific start for the Indian startup industry.
3. Higher Purchasing Power
The Indian economy’s outstanding performance was also demonstrated by an increase in purchasing power.
The nation experienced a rise in the private consumption predicted by World Consumption as markets launched and economic activity picked back up.
As opposed to 7.9%, the country’s private consumption is projected to account for 9.4% of GDP. It is also anticipated that imports will decrease from 35.5 percent in FY 2022 to 15.4 percent.
In a report entitled Navigating the Storm, the World Bank praised the nation’s policy initiatives and stated that, in contrast to most other emerging markets, India was well-positioned to weather global spillovers.
4. Excellent Drop In Inflation Rate
In November 2022, India’s wholesale inflation rate dropped to a 21-month low. The country posted a WPI (Wholesale Price Index) of 5.85%, down from 8.39 % in October, according to data from the commerce ministry.
India recorded a WPI of 14.87% in November of last year. The nation’s inflation rate fell to 5.88 percent, an 11-month low.
5. Impressive 13.5% Economic Growth
At a time when the COVID-19 pandemic‘s aftereffects were causing major economies all over the world to struggle, India displayed signals of stability.
The nation’s economy expanded well by 13.5% in the June quarter of 2022 (Q4 of FY 22), despite contractions in the two largest economies in the world, the US and the UK. The economy of the nation grew at a 6.3% annual rate in the third quarter.