India best performing among major economies in the world: Report

Business Sunday 10/July/2022 19:43 PM
India best performing among major economies in the world: Report

New Delhi: Despite the massive disruptions in both demand and supply-side factors caused by the COVID-19 pandemic and the Russia-Ukraine conflict India has shown the most consistent improvement in macroeconomic performance among the top 10 economies in the world, an industry body said in a report.

In the ranking of International Economic Resilience (IER) of the top 10 countries, India has improved its position consistently in the past four years, according to data released by PHD Chamber of Commerce and Industry. India, through its effective dynamic policy environment, is the only economy among the top ten leading economies which has shown consistent improvement in its macroeconomic performance during the last four years, Pradeep Multani, President, PHD Chamber of Commerce and Industry (PHDCCI), noted in the report.

The rank analysis of International Economic Resilience (IER), based on the 5 lead macroeconomic indicators, for each of the years of 2019, 2020, 2021 and 2022 suggests that India's macroeconomic endurance has consistently improved over the last four years as compared to the other leading economies in the world, and India is projected to improve to the IER rank of 2nd for the year 2022, says the industry body PHD Chamber of Commerce and Industry.

Germany and Canada both have gained the 1st Rank in the International Economic Resilience, the report showed.

Among the ten leading economies of the world, Germany's International Economic Resilience (IER) Rank has remained intact at 1st in the pre-COVID year of 2019 as well as the post-COVID year of 2022.

Countries, which have shown overall improvement in their IER position in 2022 vis-a-vis 2019 include Canada (IER Rank improved to the first position in 2022 from the second position in 2019), India (IER Rank improved to the second position in 2022 from the 6th position in 2019.

Italy's ranking improved to the fourth position in 2022 from the fifth position in 2019. Japan's IER Rank improved to the fifth position in 2022 from the 8th position in 2019. The IER ranking of the US improved to the 6th position in 2022 from the 7th position in 2019.

On the other hand, countries that have shown a declining resilience include China (IER Rank in 2019 was 2nd and it slipped to the 3rd position in 2022), the UK (IER Rank in 2019 was 3rd and it slipped to the 5th position 2022), France (IER Rank in Y2019 was 4th and in 2022 it slipped to the 6th position) and Brazil (IER Rank in 2019 was 9th and it slipped to the 7th position in 2022).

Highlighting the consistent improvement in India's International Economic Resilience ranking, Multani said, "India's greater and stronger supply-side interventions helped to improve its factors' mobility. The pace of economic activity remains strong due to the structural reforms undertaken by the Government during the last 2 years".

Going ahead, extracting the innate robustness of its underlying fundamentals and supported by a pragmatic and encouraging policy mix, the Indian economy is projected to continue to grow at the fastest rate as compared to other leading economies in the world, PHDCCI President said.

As per the IMF estimates of April 2022 WEO, India's real GDP growth rate and merchandise export growth rate for 2022 are projected to be the strongest at 8.2 per cent and 7.0 per cent, respectively.

At this juncture, further expansion of trade and industry would be imperative to sustain the growing economic momentum.

Further encouragement to MSMEs, agricultural and manufacturing sectors to make Indian supply chains more diverse will go a long way in realizing India's economic recovery, further strengthening its economic resilience, and thus allowing for its even faster adaptation to such unprecedented times, said Multani.