The impact of a global recession, increasingly feared by the International Monetary Fund and the World Bank, is unlikely to be as pronounced in India as in other countries, the chairman of the State Bank of India said, Dinesh Khara.

With a projected growth rate of 6.8% and “very subdued” inflation, India is doing reasonably well, Mr Khara said. PTI in an interview on the sidelines of the annual meeting of the International Monetary Fund and the World Bank here on Friday.

“Essentially, it’s (India) an inward-looking economy in terms of demand, because a lot of the GDP is basically going to the domestic economy. So from that perspective, I think it (the global recession) will have an impact effect, but it will not be as pronounced as perhaps (it will be on) other economies that are fully coupled to the world,” he said.

“If we look at the beta factor, maybe the Indian economy’s beta factor would be much lower compared to some of the other major economies that have a large export component,” he said.

Given the current state of the global economy, Khara said, India is doing reasonably well given its projected growth rate of 6.8% and inflation “well under control” despite the winds. global opposites.

The main cause of inflation is not demand-driven. It’s basically supply-side inflation, he said.

“If we really look at the supply side aspect of inflation, we have a situation where capacity utilization is around 71%. To that extent there is room to improve capacity So basically the supply chain disruption, which has happened due to the global headwinds, and… its impact on crude prices is one of the contributing (factors). ..”, he added.

Overall, all economies around the world are going through a difficult period, Khara said, adding that the government was focused on managing these factors.

India’s growth prospects are expected to improve in the future, he said.