TC Web Desk
The Economic Survey, which is released on the eve of the Union Budget, projects that India’s GDP will grow at 6% to 6.8% in 2023, though the inflation forecast of 6.8% by the Reserve Bank of India remains a cause of concern. The current account deficit is also expected to rise, giving the government little headroom for credit expansion necessary for accelerated industrial growth. More details to follow:
Key Highlights
- India stays the fastest growing economy
- India third largest economy in purchasing power; fifth largest in terms of exchange rate
- RBI project headline inflation at 6.8% in FY23
- GDP in nominal terms to be 11% in next fiscal
- Growth expected to be at 7% for 2022-23
- GDP growth projected at 6-6.8% for 2023-24
- Growth backed by domestic demand higher capex and investment
- US rate cut putting pressure on rupee
- Borrowing cost may remain higher
- Economy has gained what it lost during Covid; India’s pandemic recovery relatively quicker
- Current account deficit to widen
- Inflation won’t deter consumption, investment
- Baseline growth of 11% projected
- Services sector grew at 8.4 % (YoY) in FY22; Sector expected to grow at 9.1 % in FY 23
