In News: India’s economic growth is expected to decline to 5.7% this year from 8.2% in 2021, the UNCTAD Trade and Development Report 2022. It is expected to decline to 4.7% in the year 2023-24.
The UNCTAD report said India experienced an expansion of 8.2% in 2021, the strongest among G20 countries. As supply chain disruptions eased, rising domestic demand turned the current account surplus into a deficit and growth decelerated.
Concerns:
Higher financing cost and weaker public expenditures
High level of joblessness and distress – 5,907 MSMEs have shut shop in the last two years.
Lack of contribution by the informal sector – 2017-18 contribution was as much as 52% which has now plummeted to less than 20%.
Unemployment levels have consistently remained well above 8% for the past two years.
About Trade and Development Report:
It is an annual report released by UNCTAD
It provides comprehensive and authoritative analysis of economic trends and policy issues of international concern.
It offers recommendations for building a global economy that ensures better future for all people and the planet.
It concerns itself with economic and social damage caused by financial crises, growing debt, stagnant wages and environmental degradation.
It is intended for economists, policy makers, academics and all those involved in economic and trade research and analysis.
The 2021 report is titled “From recovery to resilience: The Development Dimension”
