Tatsat Chronicle Magazine

Economic Survey 2023-24: India’s GDP Growth Forecast For Remains Bullish

January 31, 2023
David Dibert | PxHere

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