Indian economy to grow by 7-7.8% in FY23 despite global headwinds: Experts

The Indian economy can grow by 7-7.8 per cent this fiscal on the back of better agriculture production and a revitalised rural economy amid global headwinds mainly due to the ongoing Russia-Ukraine war, eminent economists said.

Eminent economist and BR Ambedkar School of Economics (BASE) Vice-Chancellor NR Bhanumurthy said at present the Indian economy is facing multiple headwinds largely from external sources. Noting that global inflationary pressures and the Russia-Ukraine war have brought in risks to the economy, which is otherwise strong with all the domestic macro fundamentals being well managed, he said unlike advanced economies, India's Covid stimulus measures, especially the fiscal policy interventions, are less inflationary and rather growth-enhancing.

"With better agricultural production and revitalised rural economy India should touch 7 per cent growth in the current year despite global headwinds," Bhanumurthy told PTI. Echoing similar views, eminent economist and Institute for Studies in Industrial Development (ISID) director Nagesh Kumar said the high-frequency indicators point to a robust growth momentum carrying through 2022-23 with a real GDP growth somewhere between 7-7.8 per cent.