Economic Survey to peg 2023-24 GDP growth at around 6.5 per cent?
The GDP projection comes even as the International Monetary Fund reported on Tuesday that it expected some slowdown in the Indian economy next fiscal year and projected the growth to be around 6.1 per cent.
FollowIndia's annual pre-budget economic survey is likely to peg 2023-24 GDP growth at the slowest in three years, at 6.5 per cent, according to media reports.
Reports citing government sources said that the survey would show the GDP growth at 6.5 per cent for 2023-24 under the baseline scenario. The survey may caution that the tightening of monetary policy will prolong the pressure on the Indian rupee. Sources added that India's current account deficit (CAD) might also remain elevated.
Also Read: Inflation in India expected to reduce to 5% in 2023, 4% in 2024: IMF
Besides, sources said, the survey will show improvement in employment conditions in the country due to stronger consumption. Besides a further pick-up in private investment, the government's increased spending on infrastructure in the last two years could help in job creation, sources told the news agency Reuters.
The Economic Survey, the government's review of how the Indian economy fared in the past year, authored by Chief Economic Advisor V Anantha Nageswaran, would be tabled in Parliament by Finance Minister Nirmala Sitharaman.
The GDP projection comes even as the International Monetary Fund reported on Tuesday that it expected some slowdown in the Indian economy next fiscal year and projected the growth to be around 6.1 per cent.
According to the latest monthly update of its World Economic Outlook, global growth is projected to fall to 2.9 per cent in 2023 from an estimated 3.4 per cent in 2022, following which it will rise to 3.1 per cent in 2024.
Pierre-Olivier Gourinchas, IMF Chief Economist and Director of the Research Department, told media persons in Washington that the global financial body's growth projections actually for India remain unchanged from its October Outlook.
For this current fiscal year, which runs until March, the IMF has charted 6.8 per cent growth for the Indian economy. After that, it expects a slowdown to 6.1 per cent in the fiscal year 2023. And that is largely driven by external factors. This will, however, pick up to 6.8 per cent in 2024 with resilient domestic demand despite external headwinds.
Also Read: IMF projection: Global growth at mere 2.7 per cent in 2023, India's at 6.1 per cent
