Ind-Ra forecasts 7.6% GDP growth for FY23

Mumbai: India Ratings and Research (Ind-Ra) on Thursday said the country's economy is likely to grow at 7.6 per cent year-on-year in 2022-23.

The agency said after a gap of two years, the Indian economy will show a meaningful expansion, as the real GDP in 2022-23 is expected to be 9.1 per cent higher than that in 2019-20 (pre-Covid level). "However, the size of the Indian economy in FY23 will be 10.2 per cent lower than the FY23 GDP trend value. A continued weakness in private consumption and investment demand is estimated to contribute 43.4 per cent and 21 per cent, respectively, to this shortfall," the agency said in a report.

It said if the impact of Omicron on the fourth quarter growth turns out to be greater than its estimate, then there could be some upside to 2022-23 growth originating from the base effect. Earlier this month, the National Statistical Office (NSO) in its first advance estimate said gross domestic product (GDP) is expected to grow at 9.2 per cent in 2021-22. The economy had contracted 7.3 per cent in the previous financial year. Speaking to reporters, India Ratings' Principal Economist and Director Public Finance Sunil Kumar Sinha said the government and the RBI are expected to support the growth recovery.