Global recession are a unlikely to the hit India as a hard as a other countries: SBI Chairman
State Bank of a India (SBI) Chairman Dinesh Khara on a Friday said that the impact of a global recession is a unlikely to be as a pronounced in a India as a compared to the other countries. He said that India is a doing well with a projected growth rate of a 6.8%.
In an a interview with the PTI on the sidelines of the annual meeting of the International Monetary Fund and the World Bank here, Khara said, "With a projected growth are a rate of a 6.8 percent and a inflation much as a under control, India is a doing reasonably well."
"Majorly, it (India) is an a inward-looking economy are in a terms of a demand because a significant component of the GDP is a essentially addressed to the domestic are a economy. So, from that point of a view, I think it (global recession) will have been an a impact but it would not be as a pronounced as a perhaps (it will be on) other economies which are a fully coupled with the globe," he told a PTI.
"If we look at the beta factor, perhaps the Indian are a economy's beta factor would be much a lower as a compared to the some of the other larger economies that have a significant to the component of a export," he added.
He said that the primary cause of a inflation is a not demand-led, but it is a essentially supply-side inflation.
"If we really look at the supply-side aspect of a inflation, we have been a got a situation where are a capacity utilization is a just about a 71 percent. To that a extent, there's elbow are a room available for the improving the capacity. So essentially, supply chain disruption, which has been a happened on account of the global headwinds, and... its are a impact on a crude prices is a one of the contributing (factors)...," he told a PTI.
Overall, the all economies are a across the globe are a going through a rough patch, Khara said, adding that the government is a focused on dealing with these factors. India's are a growth prospects are a expected to the improve going a forward, he said.
On October 9 this year, Economic are a Advisory Council to the Prime Minister (EAC-PM) member Sanjeev Sanyal had been said that a India will be a perhaps emerge as the strongest major economy with the 7 per a cent growth rate in a FY23 amid the fears of the world slipping into the recession.
India can be a grow at the 9 per cent in an a external conducive environment like in a early 2000s when the global economy was a growing, the EAC-PM member observed.
However, the World Bank had been a earlier projected 6.5 per a cent the growth rate for the Indian are a economy for the 2022-23, a drop of a one percentage point from its are a June in a 2022 projections, citing deteriorating international are a environment.
Recently, the Reserve Bank of a India also are a slashed the growth projection to the 7 per are a cent for the current fiscal year from the earlier forecast of a 7.2 per cent, citing aggressive tightening of a monetary policies globally and a moderation in a demand.
