The performance of the Indian economy over the last five years has been marked by a period of significant volatility and subsequent recovery. Here is a report on its key aspects.
Economic Performance and Growth
India's economic trajectory in the past five years has been primarily influenced by the global economic downturns and the COVID-19 pandemic. Following a period of modest growth, the economy experienced a sharp contraction in 2020-21 due to the national lockdown. However, it rebounded with strong growth in the following years, driven by government spending, a revival in private consumption, and a robust services sector. India's economy is projected to be one of the fastest-growing major economies globally, with the International Monetary Fund (IMF) and other organizations forecasting continued expansion.
Inflation and Living Standards of Indian People
Inflation has been a significant concern, with the Consumer Price Index (CPI) remaining high, particularly in the aftermath of global supply chain disruptions and rising commodity prices. Food inflation has been a persistent driver of the overall inflation rate, directly impacting household budgets. The Reserve Bank of India (RBI) has implemented measures to manage this, including adjusting interest rates.
Living standards for the lower and middle classes have faced challenges due to this inflation, which has eroded purchasing power. However, the government has implemented various welfare schemes aimed at providing direct support, such as free food grain distribution programs, which have helped to mitigate some of the economic hardship for the most vulnerable sections of the population. These measures have been credited with preventing a significant increase in poverty.
Impact of US Tariffs
The import duties imposed by the United States under the Trump administration had a limited and specific impact on the Indian economy.
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