A rapid deterioration in global growth prospects, coupled with high inflation and worsening financial conditions, has increased fears of an impending global recession.
Despite global monetary tightening, India appears well placed to grow at a moderately brisk rate in the coming years due to the priority it accorded to macroeconomic stability, according to a department of economic affairs report. Easing global commodity prices and new Kharif crop arrival are also set to dampen inflationary pressures in the coming months.
Global slowdown may dampen India’s exports businesses outlook; however, resilient domestic demand, a re-invigorated investment cycle along with strengthened financial system and structural reforms will provide impetus to economic growth going forward, the report noted.
Hiring by companies is likely to witness an improvement in upcoming quarters driven by a rebound in new business hiring as firms continue to benefit from the lifting of the COVID-19 restrictions and optimism engendered by the vigorous sales volumes experienced during the festive season, it said.
Private sector financial and non-financial balance sheets are healthy and incipient signs of a new personal sector capital formation cycle are visible, it added.
Fibre2Fashion News Desk (DS)