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In uncertain times, how resilient is India’s economy to global economic turmoil?

Barely a couple of years after the Covid-19 pandemic disrupted the global economy, the world is looking at widespread economic turbulence once again. Inflation rates continue to be much higher than historic levels, not necessarily a result of what economists describe as overheating but due to supply chain disruptions on account of first the pandemic and then the ongoing Russia-Ukraine war. Most experts believe that things could get worse due to gas shortage in winter, especially in Europe. A rise in gas prices will not just put a squeeze on household budgets due to heating costs but also disrupt cost calculations of enterprises due to a sharp increase in energy costs. With central banks across the world raising interest rates to contain inflation – there is still a debate over how effective raising rates is to overcome supply-side inflation – growth rates are expected to suffer yet another blow.

While the Indian economy…

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