India's Economic Survey 2022-23 noted that the Indian and the world economy were hit by several global shocks since 2020. However, it states that the Indian economy staged a full recovery from the pandemic and projects that the country's economy will grow in the range of 6% to 6.8% in financial year 2024.
What Happened: Finance Minister Nirmala Sitharaman presented Economic Survey 2022-23 in the Lok Sabha on Tuesday. The survey acknowledged that the Indian economy faced several challenges in the current year such as reining in inflation and the depreciating Rupee.
It further added that "measures taken by the government and the RBI,” and global commodity prices easing up, retail inflation was contained below the RBI upper tolerance target of 6% in November 2022."
However, it states that the challenge of the depreciating Rupee persists as it sees the U.S. federal bank hiking rates.
Despite the challenges, it noted that agencies worldwide project "India as the fastest-growing major economy at 6.5-7.0% in FY23."
The Outlook Going Forward
The survey notes that the growth in the next fiscal will be supported by "solid domestic demand and a pickup in capital investment." It noted that RBI’s projection of inflation at 6.8% in FY23 is not too high "to deter private consumption," or too low to weaken investment tendencies.
Speaking about the GDP growth projection India's Chief Economic Advisor V . Anantha Nageswaran said Industry and services are growing at a steady pace as per data for the first two quarters of this year and the ten sectors in the private-listed company space have taken higher investments in the first half of FY23 as compared to FY22. He also noted that credit growth is picking up across different sectors.
Therefore, the Survey projects the economic growth to be 6.5% for the next financial year, with a range of 6% to 6.8%, he added.
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