Last Updated: December 27, 2022, 07:00 IST
Following two years of the COVID-19 pandemic, 2022 was a year of resurgence for the Indian economy. Defying every prediction about the impact of the pandemic, India bounced stronger than even the most developed countries of the world and showed a stable rate of growth. Economic activities came into full swing and the upcoming year promises more signs of improvement. Here’s a quick recap of some of the major highlights of the Indian economy in 2022.
Indian Rises to Become 5th Largest Economy
India became the fifth largest economy, leaving the UK behind in September this year. The size of the Indian economy with regards to ‘nominal’ cash was $854.7 billion compared to UK’s $814 billion, claimed a Bloomberg report. According to the National Statistical Office (NSO), during April-June 2022, India’s gross value added (GVA), which is GDP minus net product taxes and reflects growth in supply, climbed 12.7 per cent. While India saw stable growth, the UK has been battling its highest inflation rate in several decades. According to a Bank of England prediction, the UK is already in a recession period that may last up to 2024.
At a time when many major economies around the globe struggled due to the aftereffects of the COVID-19 pandemic, India showed signs of stability. The country’s economy grew by an impressive 13.5 per cent in the June quarter of 2022 (Q4 of FY 22) even as the world’s major economies US and UK witnessed contractions. In the September quarter, the country’s economy registered a growth rate of 6.3 per cent.
Increased Purchasing Power
The impressive performance of the Indian economy was also indicated by a rising in purchasing power. As markets opened up and economic activities returned to full swing, the country saw a spike in the private consumption forecast by World Consumption. The country’s private consumption is expected to make up 9.4 per cent of the GDP compared to 7.9 per cent. The imports are also predicted to drop to 15.4 per cent from 35.5 in FY 2022
The World Bank, in a report titled Navigating the Storm, appreciated the country’s policy measures and said that India was well positioned to weather global spillovers compared to most other emerging markets.
India’s wholesale inflation rate slumped to a 21-month low in November 2022. As per the commerce ministry data, the country reported a WPI of 5.85 per cent, down from 8.39 per cent in October. In November last year, India reported a WPI of 14. 87 per cent. The country’s inflation also slipped to an 11-month low at 5.88 per cent.
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