RT.com
22 Sep 2022, 23:43 GMT+10
Being ?decoupled? from global markets will help the country dodge an economic downturn, S&P has said
India is unlikely to join other leading economies in plunging into recession, rating agency S&P said on Tuesday, citing the country's relative independence from global markets.
"[The] Indian economy is decoupled from the global economy... even though you [India] are a net importer of energy. But you have enough forex reserves on one hand and your companies have managed to maintain healthy balance sheets," Paul Gruenwald, S&P's global chief economist and managing director, told reporters in Mumbai. A lot depends on how global fund flows behave if there is a recession in the US and Europe, he added.
Last week, the World Bank warned that interest rate increases by central banks around the world could trigger a "devastating" global recession next year. The global economy is in its steepest slowdown since 1970, the institution added.
Central banks in the US, UK, and EU have embarked on a string of aggressive rate hikes over the past few months with the aim of curbing spiraling inflation. The consumer price index has hit 40-year highs in the US and Britain in recent months, driven partly by the economic fallout of the conflict in Ukraine and sanctions on Russia.
Inflation in India stood at 7% year-on-year in August, which is lower than the rates in the UK, US and Eurozone. Even though India's central bank has raised its benchmark interest rate three times this year, the country will still be doing a lot better than the rest of the world, Gruenwald said. The economy is expected to grow at 7.3% this fiscal year and to slow down to 6.5% next fiscal year, according to the Indian rating agency Crisil Ratings.
India has not joined Western sanctions on Russia, citing domestic energy security concerns. Instead, the world's third biggest energy consumer has been stepping up purchases of discounted Russian oil since the spring.
Trade between Moscow and New Delhi has more than doubled so far this year. The two nations are currently working on bilateral measures to bypass the US dollar in trade and expand the use of national currencies instead.
For more stories on economy & finance visit RT's business section
(RT.com)
Get a daily dose of Entertainment Sun news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Entertainment Sun.
More InformationGENEVA, Switzerland: A new United Nations report alleges that dozens of global corporations are profiting from and helping sustain...
LONDON, UK - Lawmakers in the United Kingdom have voted overwhelmingly to proscribe the direct-action group Palestine Action as a terrorist...
DHARAMSHALA, India: The Dalai Lama is set to address a significant three-day conference of Buddhist leaders this week, coinciding with...
WASHINGTON, D.C.: In a significant ruling last week, the U.S. Supreme Court upheld a Texas law requiring age verification for users...
ISTANBUL/PARIS/BRUSSELS: As searing temperatures blanket much of Europe, wildfires are erupting and evacuation orders are being issued...
VENICE, Italy: Over the weekend, hundreds of protesters marched through the narrow streets of Venice to voice their opposition to billionaire...
(New York) - China's government has erased Hong Kong's freedoms since imposing the draconian National Security Law on June 30, 2020,...
New Delhi [India], June 4 (ANI): Union Minister for Agriculture, Farmers' Welfare, and Rural Development Shivraj Singh Chouhan held...
Pune (Maharashtra) [India], July 4 (ANI): Union Home and Cooperation Minister Amit Shah has arrived in Pune for a two-day visit to...
Birmingham [UK], July 4 (ANI): Following a hard day in the field, England spin bowling coach Jeetan Patel hailed Indian skipper Shubman...
BEIJING, July 3 (Xinhua) -- China will organize an array of cultural events to mark the 80th anniversary of the victory in the Chinese...
Accra [Ghana], July 3 (ANI): Ministry of External Affair's Secretary (Economic Relations) Dammu Ravi stated that Prime Minister Narendra...