India’s GDP will reach growth of about 8% in 2023-24
2023.01.30 12:53
India’s GDP will reach growth of about 8% in 2023-24
By Tiffany Smith
Budrigannews.com – According to a source, India’s annual pre-budget economic survey is likely to estimate GDP growth of 6–8.8% for 2023–2024.
The person spoke on condition of anonymity because the matter is confidential and stated that the government survey is likely to indicate growth of 6.5 percent for 2023–2024 under the baseline scenario. The source added that nominal growth is likely to be estimated at 11% in 2023 and 2024.
According to the source, the survey will probably indicate that growth will remain robust throughout the fiscal year that begins on April 1 and will be fueled by an increase in bank lending and increased capital spending by corporations.
Finance Minister Nirmala Sitharaman will present an economic survey by Chief Economic Advisor V. Anantha Nageswaran to the parliament on Tuesday, one day before she presents the budget for the following fiscal year.
The government examines the state of the economy over the past year in the Economic Survey.
India’s economy has recovered from the COVID-19 pandemic, but the conflict between Russia and Ukraine has increased inflationary pressures and prompted central banks, including India’s, to revert to their ultra-loose monetary policy during the pandemic.
According to the source, the survey will probably warn that the tightening of monetary policy may continue to put pressure on the Indian rupee. The survey is likely to warn that India’s current account deficit (CAD) may also remain high because imports may remain high due to a strong local economy and exports may ease due to global economic weakness.
In the July-September quarter, India’s CAD was 4.4% of GDP, up from 2.2% the previous quarter and 1.3% the previous year due to higher commodity prices and a weaker rupee.
Despite slowing from an estimated 7% in the current fiscal year, which ends on March 31, even a growth rate of 6.5 percent could keep India among the economies growing at the fastest rate in the world. It increased by 8.7% in the previous year, primarily as a result of distortions caused by the pandemic.
