New Delhi: In the middle of the assumption of recession across the world, the Chairman of the State Bank of India (SBI) expressed his views about the impact of the global recession on India.
Dinesh Khara, SBI Chairman on Friday said, “India is doing well with a projected growth rate of 6.8 percent and the impact of a global recession is unlikely to be as pronounced in India as compared to other countries.”
In the interview with media on the sidelines of the annual meeting of the International Monetary Fund and the World Bank, he said, “With a projected growth rate of 6.8 percent and inflation much under control, India is doing reasonably well. Majorly, India is an inward-looking economy in terms of demand because a significant component of the GDP is essentially addressed to the domestic economy. So, from that point of view, I think it (global recession) will have an impact but it won’t be as pronounced as perhaps (it will be on) other economies which are fully coupled with the globe,”
“If we look at the beta factor, perhaps the Indian economy’s beta factor would be much lower as compared to some of the other larger economies that have a significant component of export,” he added.
However, many countries in the world, including the United States (US) – are worried about a global recession. The possibility of a recession has surged noticeably after a conflict between Russia and Ukraine began.
On October 9 this year, Economic Advisory Council to the Prime Minister (EAC-PM) member Sanjeev Sanyal said that India will perhaps emerge as the strongest major economy with a seven percent growth rate in FY23 amid the fears of the world slipping into recession.
Recently, the Reserve Bank of India also slashed the growth projection to seven percent for a current fiscal year from the earlier forecast of 7.2 percent, citing aggressive tightening of monetary policies globally and moderation in demand.
(Vinayak)
