Trade Alert: India

INDIA

The ongoing conflict in Ukraine has clouded the economic growth outlook for India. Immediately after the outset of the conflict, the prices of imports of wheat, edible oil and fertilizers from Russia and Ukraine increased. Nevertheless, according to Dr. Rumki Majumdar of Deloitte, these external shocks will have a marginal impact on India's long-term outlook. It is expected that the Indian government's introduction of production-linked incentives, push towards Indian economic self-reliance and increased infrastructure spending in 2023 will fuel future growth. Indeed, the spillover effects of geopolitical conflicts could enhance India's status as a preferred alternative investment destination. The Indian economy is expected to grow at 8.3-8.8 per cent during the 2021-22 financial year and 7.5 per cent in 2022-23.