Global and Indian Economy

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Questions and Answers

What were the three major shocks faced by the global economy since 2020?

The pandemic-induced contraction, monetary tightening policies, and falling oil prices

The pandemic-induced contraction, India's economic challenges, and falling Chinese economy

The pandemic-induced contraction, slow down in cross-border trade, and rising commodity prices

The pandemic-induced contraction, Russia-Ukraine conflict, and persistent inflation (correct)

What was the impact of monetary tightening policies undertaken by central banks in major economies?

It led to a rise in bond yields and inflow of equity capital to most economies

It led to a decline in bond yields and inflow of equity capital to most economies

It led to a decline in bond yields and outflow of equity capital from most economies to the US (correct)

It had no impact on bond yields and equity capital

What challenges did India face in 2022-23?

Persistent inflation, rising oil prices, and declining exports

Russia-Ukraine war, modest depreciation of the Indian rupee, and widening of the CAD (correct)

Monetary tightening policies, low credit supply to MSMEs, and declining social indicators

COVID-19 pandemic, slow down in cross-border trade, and falling Chinese economy

What is the expected growth rate of India in 2022-23?

6.5-7.0% Signup and view all the answers

What are the growth drivers of the Indian economy?

Exports, private consumption, capital expenditure, increased credit supply to MSMEs, and inclusive growth Signup and view all the answers

What is inclusive growth in the context of the Indian economy?

Improved social indicators, ensured food security through government schemes, and declining unemployment Signup and view all the answers

What is the outlook for the global economy in 2023-24?

Positive, with India's recovery from the pandemic and solid domestic demand expected to support growth Signup and view all the answers

What structural reforms have enhanced the efficiency and transparency of the Indian economy?

Introduction of the Goods and Services Tax and the Insolvency and Bankruptcy Code Signup and view all the answers

What is the forecasted global growth rate for 2023?

2.7% Signup and view all the answers

What risks to the current account balance does the global economy face?

Risks from multiple sources Signup and view all the answers

What impact may entrenched inflation have on the global economy?

It may lead to higher borrowing costs, leading to low growth in FY24 for the global economy Signup and view all the answers

What is the slow down in cross-border trade listed as one of the major challenges faced by the global economy?

True Signup and view all the answers

Study Notes

State of the Global and Indian Economy in 2022-23

The global economy faced three major shocks since 2020: the pandemic-induced contraction, Russia-Ukraine conflict, and persistent inflation.
Central banks in major economies undertook monetary tightening policies to combat rising inflation, leading to a rise in bond yields and outflow of equity capital from most economies to the US.
India's economy appears to have fully recovered in FY22 despite persisting inflation and rate hikes by central banks in advanced economies.
The five major challenges faced by the global economy are the COVID-19 pandemic, Russia-Ukraine war, monetary tightening policies, slow down in cross-border trade, and falling Chinese economy.
India faced challenges due to the Russia-Ukraine war, modest depreciation of the Indian rupee, and widening of the CAD.
Despite global headwinds and tighter domestic monetary policy, India is expected to grow between 6.5-7.0% in 2022-23, reflecting its underlying economic resilience.
The growth drivers of the Indian economy are exports, private consumption, capital expenditure, increased credit supply to MSMEs, and inclusive growth.
India's inclusive growth is reflected in improved social indicators, ensured food security through government schemes, declining unemployment, and an increase in the creation of assets.
The outlook for 2023-24 is positive, with India's recovery from the pandemic, solid domestic demand, and a pickup in capital investment expected to support growth.
Structural reforms such as the introduction of the Goods and Services Tax and the Insolvency and Bankruptcy Code have enhanced the efficiency and transparency of the Indian economy.
Global growth is forecasted to slow from 3.2% in 2022 to 2.7% in 2023, and risks to the current account balance stem from multiple sources.
Entrenched inflation may prolong the tightening cycle, leading to higher borrowing costs, and low growth in FY24 for the global economy.

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Description

Test your knowledge of the current state of the global and Indian economy with this informative quiz. From the impact of the pandemic to the challenges faced by different economies, this quiz covers all the major topics. Discover how India's economy is expected to grow in 2022-23, the drivers behind its growth, and the outlook for the future. With questions covering key economic indicators, trends, and policies, this quiz is perfect for anyone interested in understanding the current state of the global and Indian economy.