The global economy needs a new powerhouse. India is stepping up
ETTelecomJan 23, 2023
Economists polled by Reuters predict that the Indian government will borrow a record ₹16T ($198B) in the fiscal year 2023-24 — unanimously stating infrastructure spending and fiscal discipline must be India's most significant budget priority.
Though predictions range between ₹14.8T and ₹17.2T, the median forecast of 43 economists estimates 2023-24's gross borrowing would still be the highest on record. In FY 2022-23, the country borrowed an estimated ₹14.2T.
While the Indian economy may be slowing, it is growing above consensus estimates. Under PM Modi’s leadership, India is set to be the second-fastest growing economy in the G20 in FY 2022/23. As global manufacturers are looking beyond China, India is stepping up to seize the moment and is getting closer to finally meeting its economic potential.
Even before COVID struck, India's financial sector was going through tough times. The current overview of the Indian economy is rather grim, as bad debt and rising interest rates are expected to hinder India's economic recovery. There's an urgent need for course correction, or the worsening global crises will soon bring more hardships for India's citizens.
There's a 50% chance that India's GDP will be at least $12.8 trillion at the end of 2025, according to the Metaculus prediction community.