Indian

NEW DELHI - India’s exports may see a warm growth this year as the country’s major export markets are forecasttodeclinesharplyin2023,theGovernmentsaid.

In2022,theglobaltradegrowthfell,anditisexpectedto remain low in 2023 with a further decline in volume and valueoftradeonthebackofslowingglobaloutput,”India’s MinistryofFinancesaidinmonthlyeconomicreport.

As per the report, High frequency indicators suggest monetary tightening has started weakening global demand and this may continue in 2023 as various agencies haveforecastedadeclineinglobalgrowth.

The monthly economic report released recently also highlightsthatbesidesmonetarytightening,uncertainties from the lingering pandemic and ongoing conflict in Europemayfurtherdampenglobalgrowth.

The report further adds that While inflation risks look set to diminish in 2023/24, geopolitical tensions and consequentsupplychaindisruptionsmaynot.

Despite the prospect of tepid export growth, the International Monetary Fund (IMF) and the World Bank project India to be the fastest-growing major economy in 2023,thereportsaid.

As estimated by IMF India will grow at 6.1% in 2023 while the World Bank estimates the country’s growth for nextyearat6.6%.

If El Nino predictions are accurate, monsoon rains in India could be deficient leading to lower agricultural outputandhigherprices,thereportsaid.

The Reserve Bank of India is mandated to keep retail inflation within its tolerance band of 2%-6%. Data released last week showed India’s annual retail inflation in January rose above the central bank’s upper threshold for the first time in three months to 6.52% from 5.72%inDecember.