How India has protected itself from global recession 

The ongoing Russia-Ukraine conflict has pushed the world towards recession after the Covid-19 pandemic laid the grounds for it. Experts believe that the global economy is under threat as Western countries led by the United States of America and the European Union are facing severe inflation. Amidst this chaos, India’s economy is still projected to grow rapidly in the coming few years by the most reliable institutions around the world. While inflation has mildly risen in the last couple of years, there are now signs that predict any kind of slowdown for India. So what has made India the economic ‘bright spot’? Here is how India has protected itself from the global recession.  

Multi-polar diplomacy

India has historically remained non-aligned in world politics and has made diplomatic decisions based on its national interests. While India has rapidly developed relations with the Western world in the last two decades, it has also maintained its close relations with Russia as an important strategic partner. Despite American sanctions on Russia, India is importing oil from Russia in the midst of Western criticism and attacks. This purchase has kept oil prices somewhat under control, much to the contrary of the rest of the world. This has retained India’s purchasing power and kept inflation in check.  

Increase in manufacturing and exports  

The ‘Make in India’ initiative has gained strong momentum in pursuit of the country’s aspirations to become a manufacturing hub. A large-scale increase in developmental projects and manufacturing capacity has resulted in the creation of jobs which ultimately increases purchasing power of a society. In addition to this, India’s overall exports also reached a record $750 billion, with a goal to take this number to $2 trillion by 2030. This massive increase in India’s goods and services export has made it resistant to recession possibilities.  

Proactive steps to reduce dependency on oil  

Oil availability wields a tremendous influence on inflation and a country’s economic conditions. Although India has gone against Western sanctions several times to purchase cheaper oil, the high costs of petrol continue to impact the common man’s purchasing power. Steps are thus being taken to implement the usage of alternate energy sources such as solar power and hydrogen-powered cars so that India does not remain so heavily dependent on oil.  

These are in brief few of the important ways in which India has protected itself from global recession. 

Image source: The Economic Times