According to the recent IMF data, India recovered significantly from 5.8 per cent GDP contraction in 2020 to 9.1 per cent growth in 2021 and 6.8 per cent in 2022 with projected growth rate of 5.9 per cent in 2023, the chamber said.
“The growth rates for 2021 and 2022 (average) are significantly above the growth rate of 3.9 per cent posted in pre-pandemic year 2019,” it added.
The growth projections for 2023 to 2028 are also at the highest as compared with the top 10 leading economies, said Dalmia.
“Going ahead, continued economic reforms in India would further strengthen the economic fundamentals of the country to maintain steady economic growth trajectory in the coming months,” said Saket Dalmia, President, PHD Chamber of Commerce and Industry.
Strengthening of India’s connectivity with Global Value Chains (GVCs) will help improve supply side bottlenecks and reduce costs of doing business, he added.
“However, industry needs a great hand-holding in such a difficult environment caused by global economic uncertainties and volatile inflationary conditions,” Dalmia added. The chamber also stressed that on the need to focus more on the manufacturing sector as high cost of borrowings, high prices of raw materials have impacted the price- cost margins of the producers.
Reduced cost of doing business such as easier compliances and a robust single-window system will enhance ease of doing business in the country, it added.