Page 8 - Bullion World Volume 3 Issue 1 2023

Bullion World | Volume 3 | Issue 1 | January 2023

Indian Economy in 2023

Mr Shekhar Bhandari, President of Global Transaction Banking

Kotak Mahindra Bank

I. Introduction
In alignment with Honourable Prime Minister Narendra Modi’s vision,
the Indian economy is making headway toward becoming a US$5 trillion
economy by 2025.

2022 has been a roller coaster ride. While it saw our nation bouncing back
from the effects of the global pandemic, external forces such as rising
inflation in the western world, the US repo rates, and the conflict in Ukraine
also contributed to hindering the growth a bit. Despite this, we became
the world's fifth-largest economy by nominal GDP and the third-largest by
purchasing power parity (PPP), with a growth rate of 6.9%, as reported by
Goldman Sachs.

The inconsistency in the markets is expected to continue in 2023, majorly
impacted due to the financial pressures being faced by other leading
economies.
Mr Shekhar Bhandari

II. Economic growth
Recently, the Institute of International
Finance estimated a global
economic growth rate of between
1.2 - 1.5 % in the upcoming year.
This pegs it to the level of 2009
(mortgage-industry led recession).
While many economists are averse
to using the term recession, I believe
a global slowdown is imminent.

Being a part of the connected world,
it is inevitable that India too, will face
the impact. Something that we have
already witnessed in 2022. Having
said that, Goldman Sachs still
maintains a positive growth rate for
India of 5.9%, which is almost four
times higher than what is predicted
for the rest of the world.

Two of the key factors for this
sustained growth, despite the
predicted inflation upwards of 6.5%,
include a vast demand base and a

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