NEW DELHI: Despite massive disruptions in demand and supply factors caused by the Covid-19 pandemic and the Russian-Ukrainian conflict, India has shown the most consistent improvement in macroeconomic performance among the top 10 world economies, an industry body said in a report.
In the International Economic Resilience ranking (IER) of the top 10 countries, India has steadily improved its position over the past four years, according to data published by PHD Chamber of Commerce and Industry.
India, owing to its effective dynamic policy environment, is the only economy among the top ten economies that has shown steady improvement in its macroeconomic performance over the past four years, Pradeep MultanPresident, PHD Chamber of Commerce and Industry (PHDCCI), noted in the report.
The rank International Economic Resilience (IER) analysis, based on the top 5 macroeconomic indicators, for each of the years 2019, 2020, 2021 and 2022 suggests that India’s macroeconomic resilience has steadily improved over the past four recent years compared to other major economies in the world, and India is expected to improve in IER ranking 2nd for the year 2022, according to industry body PHD Chamber of Commerce and Industry
Germany and Canada both gained 1st place in international economic resilience, according to the report.
Among the world’s top ten economies, Germany’s International Economic Resilience (IER) ranking remained intact at 1st in the pre-Covid year of 2019 as well as the post-Covid year of 2022.
Countries that showed an overall improvement in their IER position in 2022 compared to 2019 include Canada (IER ranking improved to first position in 2022 compared to second position in 2019), India (the IER ranking improved to second position in 2022 from 6th place in 2019.
Italy’s ranking improved to fourth position in 2022 from fifth position in 2019. Japan’s IER ranking improved to fifth position in 2022 from 8th position in 2019. The IER ranking of the United States improved to 6th position in 2022 from 7th position in 2019.
On the other hand, countries that have shown declining resilience include China (IER ranking in 2019 was 2nd and it slipped to 3rd position in 2022), UK (IER ranking in 2019 was 3rd and it slipped to 5th position 2022), France (IER ranking in 2019 was 4th and in 2022 it slipped to 6th position) and Brazil (IER ranking in 2019 was 9th and it slipped to 7th position in 2022).
Highlighting India’s steady improvement in ranking on international economic resilience, Multani said, “India’s larger and stronger supply-side interventions have helped improve its factor mobility. The pace of economic activity remains buoyant due to the structural reforms undertaken by the government over the past 2 years.”
Going forward, by extracting the innate robustness from its underlying fundamentals and backed by a pragmatic and encouraging policy mix, the Indian economy is expected to continue to grow at the fastest pace compared to other major economies in the world, said the president of PHDCCI.
According to IMF estimates of April 2022 WEOIndia’s real GDP growth rate and merchandise export growth rate for 2022 are expected to be the highest at 8.2% and 7.0%, respectively.
At this point, further expansion of trade and industry would be imperative to support the growing economic momentum. Further encouragement to MSMEs, agriculture and manufacturing sectors to diversify Indian supply chains will go a long way in realizing India’s economic recovery, further enhancing its economic resilience and thus enabling its even faster adaptation to changing times. unprecedented, Multani said.