Page 26 - The Indian EYE 052623

BUSINESS EYE MAY 26, 2023 | The Indian Eye 26

How a strong Indian economy

is leading the G-20 group and

fueling Asia’s ascendancy

Higher interest rates and weaker external demand will continue to weigh on investment and exports in 2023

OUR BUREAU nance. Accelerated & inclusive
growth, Progressive measures on
New Delhi
sustainable development, Techno-
ndia’s economy is expected to logical advancement & Transforma-
grow by 6.7 per cent in the cal- tion, Digital Infrastructure, Multilat-
Iendar year 2024, supported by eral institutions for the 21st century,
resilient domestic demand, accord- and women-led development.
ing to a UN report which said higher “Accelerated economic growth is
interest rates and weaker external key, given the fear of recession,” said
demand will continue to weigh on Kishore Subramanian, the founder
investment and exports this year for of Shree Consultants. In December,
the country. World Bank stated that at the end
of 2021, the external debt of heavily
The World Economic Situation indebted poor countries totaled $9
trillion.
and Prospects as of mid-2023 “Another ingredient for accel-

released on Tuesday said In- erated growth is the increased inte-
gration of micro, small, and medi-
dia’s economy, the largest in India’s G20 presidency holds immense importance in advancing the notable accomplishments um enterprises (MSMEs) in world
the South Asian region, is ex- of the past 17 presidencies (ANI photo) trade,” he added. According to data
from the World Bank, small and me-
pected to expand by 5.8 per dium-sized enterprises (SMEs) play

cent in 2023 and 6.7 per cent pected to remain “strong” even as G20 meeting is “Vasudhaiva Kutum- a vital and significant role, particu-
prospects for other South Asian na- bakkam”, which translates to “The larly in developing nations. These
in 2024 (calendar year basis), tions “are more challenging.” India World is One (my) family” enterprises constitute approximately
Formed in 1999, the G20 com-
supported by resilient domestic is projected to grow at 6.7 per cent prises 19 nations and the European 90% of all businesses and contribute
in 2024, the fastest-growing major
to 50% of global employment.
demand. economy in the world, the flagship Union, serving as a platform for Fi- India recognizes the crucial
report had said. nance Ministers and Central Bank significance of trade routes and re-
However, higher interest rates Chief of the Global Econom- Governors to engage in discussions sources accessibility, advocating for
and weaker external demand will ic Monitoring Branch, Economic regarding global economic and fi- international financial institutions to
continue to weigh on investment Analysis and Policy Division, UN nancial matters. The G20 nations demonstrate greater responsiveness
and exports in 2023, it said. Inflation Department of Economic and So- collectively represent nearly two- towards the funding needs of micro,
in India is expected to decelerate to cial Affairs, Hamid Rashid had said thirds of the world’s population, small, and medium enterprises (MS-
5.5 per cent in 2023 as global com- at a press conference that India is a 75% of global trade, and 85% of the MEs). Undoubtedly, prioritizing
modity prices moderate and slow- “bright spot” in the world economy. global GDP. the reform of multilateral financial
er currency depreciation reduces According to several experts, as In the aftermath of the world- institutions to align with the require-
imported inflation. The estimates the trajectory of rising economies wide financial and economic crisis in ments of the Global South will be a
for India’s economic growth in the shifts more towards Asia, the recent 2007, the G20 was granted the sta- prominent agenda item during In-
mid-year assessment remained un- G20 meetings have come into the tus of the premier forum for inter- dia’s presidency.
changed from the projections made spotlight since December 2022 when national economic cooperation by India’s G20 presidency comes at
in the World Economic Situation India took on the presidency role of elevating it to the level of Heads of a crucial stage when it is projected to
and Prospects 2023 report launched the same. State and Government. The G20 op- be one of the top four global econo-
in January this year. India’s G20 presidency holds erates through two primary channels mies by the end of the decade so the
The flagship report issued in immense importance in advancing of involvement: the Finance Track, expectations from it are quite high.
January had said that India’s GDP the notable accomplishments of the involving finance ministers and cen- The most paramount goal India
is projected to moderate to 5.8 per past 17 presidencies, given its status tral bank governors, and the Sherpa is trying to achieve is to contribute
cent in 2023 as higher interest rates as the largest democracy globally Track. solutions to the global challeng-
and global economic slowdown and the rapidly expanding economy. India’s top priorities during this es faced today, and also act as the
weigh on investment and exports. The G20 is held annually with a ro- G20 meeting will be topics such as bridge between developed and de-
India’s economic growth is ex- tating presidency. The motto of this Green Development, Climate Fi- veloping nations around the world.

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