Chief Economic Adviser V Anantha Nageswaran on Tuesday ruled out the risk of stagflation for India, saying the economy is in better shape than other nations.
Stagflation is the phase when an economy faces moderating GDP growth along with high inflation.
“The risk of stagflation for India is quite low compared to other countries,” he said.
He added that India is better positioned than many other countries as the country’s financial sector is in better shape to support growth.
India’s economy grew by 4.1% in the January-March quarter of 2021-22, bringing the annual growth rate to 8.7% due to better performance of the manufacturing, mining and construction sectors, according to reports. official data released on Tuesday.
In the previous fiscal year 2020-21, the economy contracted by 6.6% as the COVID-19 pandemic disrupted business activities.
China recorded economic growth of 4.8% in the first three months of 2022.
The 4.1% expansion in the January-March period of 2021-22 is the weakest quarterly growth in the past fiscal year. Growth was 20.1%, 8.4% and 5.4% in the first, second and third quarters respectively, according to data released by the Office for National Statistics (ONS).
(Only the title and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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