Will Indian Economy face a jolt??

The entire world got a jolt with the collapse of one bank in the US which then spread to a few other banks. Now some of the European banks have also joined and as they say, there is never one cockroach in the kitchen so we do not know yet. Post this issue the regulators have come out very strongly saying that things are under control. But I would not like to believe so till we tied over the entire crisis.

There is looming crisis with India's forex reserve falling to a three-month low. Experts predict that the country to face economic crisis is inevitable. With some sectors such as agriculture, manufacturing, and services showing growth. At the sametime, the pace of recovery has been slower than expected, and some sectors such as hospitality, tourism, and aviation continue to face challenges due to ongoing restrictions and reduced demand.

At the same time, Indian economy will grow in the range of 6.8% - 7% in the coming year while world GDP growth estimates are pegged at a tepid range of 2.5% - 3%. According to CEBR, a global recession has already started in 2023.

A report states that, the global economy topped $100 trillion for the first time in 2022 but will halt in 2023 as governments continue to struggle against growing costs. Indian traders are likely to face more challenges. A part of the problem is that India imports more than it exports, inflating the country's trade balance.

Experts predict that, the economy of India is "losing steam". There are certain measures introduced by the government include the National Monetization Pipeline, the Production Linked Incentive scheme, and the Privatization of Public Sector Enterprises.

There is a growing concern on the country's forex reserves fell by $2.39 billion to a three-month low of $560.003 billion for the week to March 10, the Reserve Bank said in its latest weekly data release.

India is one of the countries with the quickest pace of digital adoption. This was accomplished through a mix of government action, commercial innovation and investment, and new digital applications that are already improving and permeating a variety of activities and different forms of work, thus having a positive impact on the daily lives of citizens. Given the global uncertainty and the newer information regarding the banking crisis comes up, the stock could remain volatile and can be avoidable at the current juncture.

Dr. Deepak Kumar Sahu, President & CEO, VARINDIA