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Recession in Advanced Economies May Cool Prices in India

  • Moderation in global commodity prices will help India imports
  • Citi sees CAD at 3.4% of GDP, BoP at $45-50 billion for FY23

Recessions in advanced economies may benefit India in a “perverse way” as a moderation in global commodities prices will help cool domestic inflation, according to Citigroup Inc.’s head of economics for the country.

“India being a net importer of commodities should benefit on the inflation front,” Samiran Chakraborty, managing director and chief economist for India at Citigroup, said in an interview with Bloomberg Television on Monday. He added that India would still face face pressures from a global slowdown as it will crimp exports and economic growth.