The world is moving towards a major recession. The ongoing outbreak of Kovai 19 piracy over the past three years and the measures taken to combat it have revolutionized the global economy as a whole. Ukraine-Russia war on alcoholism exacerbates the situation. It is not new for the world to face such a recession. The Great Depression, which began in 1918 after World War I, had a severe effect on 1920 and 1921. Not surprisingly, the global economy as a whole was in turmoil when the plague of the 1918 Spanish flu hit. The world has faced four recessions in the last 70 years. 1975, 1982, 1991, and 2009 saw similar increases in prices and unemployment, as well as a sluggish production-free recession. Now starting with the price of crude oil in 2022, all essential needs have increased. Further aggravating the situation is widespread. All the major powers, including the United States, are facing a severe recession. The main reason is the monster’s onslaught of rising inflation. According to US government figures, inflation has risen to 8.6%, the highest level in the last one generation. The American citizen is facing rising prices in all areas, including housing, groceries, airfare, and new and old vehicles. Global central banks have been raising interest rates since last May to combat inflation. Experts say the move is too late, but if it is not taken now, the situation could escalate into a catastrophic one. The global recession, inflation and inflation have not affected India. There is no denying that the situation is being handled very cleverly compared to other superpowers and developing countries. In particular, the crude oil deal with Russia and the rupee-ruble trade have helped keep the Indian economy afloat. To control inflation, the Reserve Bank of India (RBI) has hiked interest rates on short-term loans to banks by 0.90% and 0.40% in the coming weeks. Bank borrowers may be affected by the increase in installments. Last Wednesday, the US Federal Reserve rallied with India by 75 points, or 0.75%. Following this, many countries in the European region, including Britain and Switzerland, began to raise bank interest rates; Or waiting to start. The question is not whether this struggle against inflation will lead to success with such concerted and aggressive policy decisions; But, the concern is that it should not cause further trouble. In the developed highlands, it is doubtful whether the financial stimulus measures taken over the past two years will continue. The US Federal Reserve’s excessive interest rate hikes are a sign of the so-called ‘recession’. The US Federal Reserve expects its policy rate to be 3.5% by 2022, 1.5% higher than the March estimate. However, the Reserve Bank of India has not clarified such policy rates. Raised interest rates just in time last month. An interest rate hike should be a sharp weapon to revive economic growth. At the same time, it should not be a burden to the people during the recession. We can take comfort in the fact that the Indian economy has not been pushed into recession amidst many challenges, including inflation and unemployment. Despite a slight setback in the last quarter of the last financial year, India continues to be the fastest growing economy in 2021-22. If favorable monsoon and increased exports help, the current inflation problem can be pushed back and brought under control.
