Indian Economy On Track To Achieve 7% Growth In FY23, Says Finance Ministry
For FY24, the Economic Survey 2022–23 projected a baseline growth rate of 6.5%.
The Indian economy is on track to achieve the 7% growth in FY23, the Finance Ministry said in its January economic review, citing the performance of high-frequency indicators in December and January.
The Economic Survey 2022–23 projected a baseline growth rate of 6.5% for FY24 but also acknowledged that risks are more skewed to the downside than the upside. The geopolitical environment remains fraught. This, in turn, could cause further economic disruption due to disruptions in supply chain channels and other factors, it said.
Some meteorological agencies predict the return of El Nino conditions in India this year. If these predictions are accurate, then monsoon rains could be deficient, leading to lower agricultural output and higher prices, the survey said.
Other Key Pointers:
For the full year, growth of global trade fell in 2022 and is expected to be still lower in 2023 with a further decline in volume and value of trade on the back of slowing global output.
There is a likelihood of India's exports showing tepid growth as the major export markets of India are forecast to decline sharply in 2023.
The measures announced in the Union Budget FY24 will sustain the growth momentum that has characterised the Indian economy in the current year while aiding in addressing inflationary pressures.
With an emphasis on macroeconomic stability in the last several years, the Indian economy faces the year ahead with confidence while being mindful of the risks.