Amid Global Slowdown, India Among Fastest Growing Economies In Asia: OECD

Amid the global economic slowdown due to the Ukraine crisis, India, with a growth rate of 6.6 per cent in this financial year (FY) is among the fastest-growing economies in Asia, the Organisation for Economic Cooperation and Development (OECD) said on Tuesday.

Despite declining global demand and the tightening of monetary policy to manage inflation, India is all set to become the second-fastest growing economy in the G20 in FY 2022-23 after Saudi Arabia, said the Paris-based intergovernmental body in its latest Economic Outlook'.

As the domestic demand and exports moderate, Indian gross domestic product (GDP) growth will slow to 5.7 per cent in FY 2023-24, however, still it will be growing more than several other G20 economies including China and Saudi Arabia.

The report added that after hitting 6.6 per cent in FY 2022-23, GDP growth is estimated to moderate in upcoming quarters, to 5.7 per cent in FY 2023-24, before reverting to around 7 per cent in FY 2024-25.

In the next year, growth is majorly dependent on the Asian emerging market economies. These will account for about three-quarters of global GDP growth next year, with the Europe and United States (US) declining sharply, as per the report.

Also, the rating agency Icra has projected the year-on-year (YoY) growth of the gross domestic product (GDP) and gross value added (GVA) at basic prices (at constant 2011-12 prices) in Q2 FY2023 at 6.5 per cent and 6.3 per cent, respectively, a base effect-led halving from the 13.5 per cent and 12.7 per cent, respectively recorded in Q1 FY2023.

Meanwhile, amid rising inflation and impending global slowdown, India is to post a 6.5 to 7.1 per cent growth during the financial year (FY) 2022–23, said Deloitte India in a report.