Jaishankar – India to be fastest growing major economy in the world in 2023 with at least 7% growth

On September 10, External Affairs Minister S. Jaishankar landed in Riyadh on a three-day visit, to discuss strengthening of relations between the two countries.

This is the first time that he has visited Saudi Arabia as External Affairs Minister. 

Mr. Jaishankar said on Sunday in a tweet, “Our collaboration holds the promise of shared growth, prosperity, stability, security and development,” lauding the strong strategic economic ties between the two countries.

Referring to a meet with the Indian expatriate community in Saudi Arabia, he tweeted, “Began my visit to Saudi Arabia with interaction with our community. Appreciated the contribution of our diaspora in facing national challenges.” The minister also spoke to the community about India’s resilience, and the strength it showed during the COVID pandemic. He also praised the national transformation the country was undergoing.

He also addressed diplomats at the Prince Saud Al Faisal Institute of Diplomatic Studies in Riyadh on Sunday, emphasizing on the importance of India-Saudi strategic relationship at a time when “the world is at crossroads”.

In the past few decades, India has made extensive progress furthering its economy, and has emerged as one of the world’s highest valued economies, expressed Minister S. Jaishankar, further extending his optimism that it will be the fastest growing major economy in the world, with at least 7% growth.

Addressing the Indian diaspora on Saturday, Mr. Jaishankar said that India is reimagining the very fundamental workings of its banking, education, credit and labor polices to better serve her citizens. He also mentioned that India has ambitious plans to expand its economy, and work towards its end goal of being a high-income, developed country.

Large-scale reforms and a visionary outlook will be the key to achieving the milestones that India has put out for herself. Reassuringly, the country has seen a significant gain economically, reaching $670 billion in exports, which is a record high. Goods trade raked in $400 billion as well.

This is despite the recent obstacles posed by the Ukraine crisis, before even the fallout of the COVID-19 pandemic has settled down. Speaking about the current geopolitical situation, he said the world is facing many challenges, like rising food, oil and shipping prices due to the Ukraine crisis.

Nevertheless, Minister Jaishankar expressed his confidence in a strong recovery. He reiterated that India would have the greatest growth rate by the end of the year, stating that the country would end the year on a strong note, with a minimum of 7% growth.

He also applauded India’s economic recovery post-pandemic. Stating that many nations squandered resources during the pandemic, he said, “I would say, like a knee-jerk…they were in a hurry to respond to the crisis situation. So, they didn’t necessarily use their funds and resources wisely.”

The facts behind Jaishankar’s statements

With the government taking constantly monitoring and engaging with the Reserve Bank of India (RBI) and taking measures to bring down inflation, along with an optimistic recovery path due to pent up demand for services and increased industrial output, it is clear that India’s economy is on an upward trend towards complete recovery.

Analysts at Morgan Stanley have stated that India is likely to be the fastest-growing Asian economy in 2022-23, predicting India’s gross domestic product to average 7% during the period and contributing 28% and 22% to Asian and global growth respectively, further supporting Mr. Jaishankar’s statements

A decline in commodity prices, especially so with crude oil has contributed largely to this renewed optimism, with prices dropping 23-37% from its peak in March of this year, Morgan Stanley expects macro stability indicators will return to comfortable levels, and the pressure on the Reserve Bank of India (RBI) to hike rates may not be necessary.

A part of the story lies in the clear shift in the policy focus towards lifting the productive capacity of the economy, stated Morgan Stanley, mentioning that the Indian economy is set for its best run in over a decade, as production catches up with stifled demand.

Minister Jaishankar also appreciated the strong ties between India and Saudi Arabia, hailing their efforts during the COVID-19 pandemic with Riyadh helping out with supply shortages during peak waves.

He lauded the Saudi Arabia’s international aid efforts that saw shipments of crucial oxygen being supplied to a medical oxygen starved India. He mentioned the countries efforts and comeback during and after the COVID pandemic.

The minister brought up the Vande Bharat Mission as an excellent example of the Indian government’s responsiveness. 70 million people were evacuated back to the country during the peak of the pandemic, under the Vande Bharat Mission from all over the world, which is an operation conducted at unforeseen scale. “That is the India that the world sees today,” Mr. Jaishankar said.

Minister S. Jaishankar also co-chaired the inaugural ministerial meeting Committee along with Saudi Arabian counterpart, Foreign Minister Prince Faisal bin Farhan Al Saud, on Political, Security, Social and Cultural Cooperation (PSSC), established within the India-Saudi Arabian Strategic Partnership Council framework.

He also paid a visit to the Gulf Cooperation Council (GCC) Secretary-General Nayef Falah Mubarak Al-Hajraf, signing a memorandum of understanding on the consultation mechanisms between India and the GCC nations.

These efforts follow recent efforts to amend diplomatic relations following recent backlash over remarks on the Prophet by ex-BJP spokesperson Nupur Sharma.