In India's case, a fragile economic growth rate is visible across all four growth engines of the economy—Consumption (C), Investment (I), Government Spending (G) and Net Exports (NX).
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Global economic growth is expected to show a little uptick in 2023 amidst the frail growth outlook for the upcoming period in major Advanced Economies (AEs) and Emerging Market and Developing Economies (EMDEs), especially after the emergence of the Covid-19 pandemic. The recently released Economic Outlook, June 2023 by the Organisation of Economic Co-operation and Development (OECD) predicted a subdued and slow global economic recovery to 2.89 percent in 2024 from 2.74 percent in 2023. Amongst the EMDEs, India is predicted to outperform its peers by registering a growth rate of 7 percent in 2024 from 6 percent in 2023. Despite this challenging global economic growth scenario, India is also seen as a 'bright spot' in the world economy. However, India has been experiencing a declining trend in its economic recovery for the past couple of years. The real growth rate of India's gross domestic product (GDP) is expected to decelerate further to 6.5 percent in FY 2023-24 from 7.2 percent in FY 2022-23 and 9.1 percent in FY 2021-22, as predicted by the official estimates of RBI and GoI.
[This article has been reproduced with permission from SP Jain Institute of Management & Research, Mumbai. Views expressed by authors are personal.]