Prudent fiscal policy of India saw a positive growth

Due to the negative economic growth in US, UK and EU, there has been an unprecedented inflation. On the other hand, a school of thought claims that India’s prudent fiscal policy has resulted in a positive growth.

The average growth of India is projected to be at 7% in 2022-23, which is estimated to be the strongest among all the largest economies, and it will have the contribution of 28% to Asian and 22% to the global growth, stated Morgan Stanley in a report. He further added that India’s suitable position in Asia helps to deliver domestic demand alpha, which is important for the developed market growth weakness percolates into Asia’s external demand.

Sanjeev Sanyal, economic adviser of Indian government maintained the stand of fiscal prudence and providing stimulus to boost economy at “right time” and to “appropriate groups”.

India’s policy is focused towards the lifting the productive capacity of the economy, and the series of reforms taken by policymakers which will catalyse an upswing in the private capex cycle, helping to unleash a powerful productivity dynamic, leading to the onset of a virtuous cycle, said Morgan Stanle.