Indian Economy Shows Resilience in Face of Global Challenges

Wed, 31 Jul 2024

The Indian economy has demonstrated its resilience in the face of global challenges, with inflation remaining well within the Reserve Bank of India's (RBI) target range of 2-6%. According to a recent tweet by Smt Nirmala Sitharaman's office, measures implemented since FY 2014-15 have led to a reduced average inflation of 4.5%, a significant achievement considering global economic fluctuations.

During the pandemic-induced challenges from FY 2019-20 to FY 2023-24, India managed to contain inflation at a relatively low rate of 5.7%. This is impressive considering many countries faced unprecedented double-digit inflation rates during this period. The Indian government's proactive measures have paid off, keeping inflation under control and demonstrating the economy's capacity to absorb external shocks.

Historically, India has shown varying levels of inflation under different governments. During the NDA regime from 1999-2004, retail inflation was 3.8%. Under UPA 1 from 2004-2009, it rose to 6.0%, while during UPA 2 from 2009-2014, it peaked at 10.2%. The combined period of UPA 1 and 2 saw an average retail inflation rate of 8.1%

The Indian economy's performance is a testament to the government's efforts to manage inflation effectively. As the global economic landscape continues to evolve, India's ability to maintain stability and control will be crucial in ensuring sustainable growth and development.

Published by Chronicles Of India. Scroll down to read more