Indian Economy News

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

  • IBEF
  • June 24, 2022

Despite the global headwinds due to the ongoing Russia-Ukraine conflict, the Indian economy is expected to grow by 7-7.8% in FY 2022-23 on the back of better agriculture production and a revitalised rural economy.

In view of rising inflation, bottlenecks in the supply chain, and geopolitical tensions tapering recovery, the World Bank has cut India's economic growth forecast for FY 2022-23 to 7.5%. India's economy grew by 8.7% in FY 2021-22 against 6.6% contraction in FY 2020-21.

CPI inflation peaked in March 2022 and a large part of the CPI inflation in the last three months is driven mainly by fuel prices, said Mr. NR Bhanumurthy, Vice-Chancellor, BR Ambedkar School of Economics (BASE).

The Reserve Bank retained its GDP growth forecast of 7.2% for FY 2022-23 in its third monetary policy of 2022–2023 but cautioned against the negative effects of geopolitical tensions and a downturn in the global economy.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.