India has tactfully tackled the challenges to economy from Russia-Ukraine war

IMF study shows how India performed better compared to other ASEAN Members

- BY SUBRATA MAJUMDER

Concerns loomed large on India’s double standard for its neutral stand on Ukraine ~ Russia war and sanction on Russia. Analysts apprehended India’s isolation from global geopolitical influence and global market, which could slow down its growth.

Nevertheless, outsmarting all the apprehensions, India underpinned a smooth and uninterrupted growth, defying spill-over impact of the war.

IMF foresaw slip in global growth. It forecasted global growth to 3.2 percent in 2022, from 6 percent in 2021 and further fall to 1.3 percent in 2023. In contrast, India’s GDP growth spurred to 9.4 percent and 7.2 percent in 2021-22 and 2022-23 respectively. It surpassed China’s growth.

How did India escape backlash of the war? Factors, which became detrimental to global growth due to war, were weathered by India. Inflation and energy crisis were the major impact of Ukraine ~ Russian war. Global inflation soared to 8.8 percent in 2022, from 4.7 percent in 2021. Energy prices heightened to 20 percent within five months of the outbreak of the war., according to IMF Outlook.

Europe fell prey to most vulnerable situation due to war. Conflict triggered massive food inflation and energy crisis in EU. Russia is the biggest supplier of wheat, gas and oil to the region. Incidentally, nearly 80 percent of the pipeline passes through Ukraine.