The Indian economy saw multiple challenges in 2022 ranging from a spike in energy prices from the Russia-Ukraine war to dealing with the fallout of the Fed’s rate hike.
The initial impact of Russia’s invasion of Ukraine saw Brent crude prices shooting to USD 130 per barrel, the global food supply is disrupted and inflation soaring. This posed multiprong challenges to the Indian economy. With April inflation shocking at 7.79 percent, the government swung into action adding to the freeze on the passthrough of crude oil prices to petrol, and diesel.
It restricted wheat exports in May followed by a slew of other measures including slashing excise on petrol and diesel and doubling the fertilizer subsidy.
Therefore, as we move into 2023 the challenges are playing. There is uncertainty with COVID infections given what is happening in China and elsewhere. There is pressure to maintain growth and fiscal consolidation even as large parts of the world stare at an impending recession, and of course, keeping inflation within comfort levels while revisiting fuel prices and maintaining a stable currency.
Watch the accompanying video of CNBC-TV18’s Sapna Das to know more about the decisions taken by the government to deal with these challenges and to know what lies ahead in 2023.