Higher domestic demand and a pick-up in capital investment is expected to help the Indian economy grow 6.5 per cent in real terms in FY24 or 2023-24, the Economic Survey is learnt to have projected. In nominal terms, the GDP growth rate is expected to be around 11 per cent, suggesting an average annual inflation during the next financial year to be 4.5 per cent.
The Economic Survey 2022-23, scheduled to be tabled in Parliament by Union Finance Minister Nirmala Sitharaman Tuesday morning, has also likely projected the growth rate for the current financial year, i.e., 2022-23, at 7 per cent. This is higher than the 6.8 per cent growth forecast of the Reserve Bank of India in its December 7, 2022, monetary policy.
Explained |Economic Survey: What is it and what to expect in 2023
Sources said a 7 per cent growth in 2022-23 for India is higher than that for most major global economies and is even slightly above than the average growth rate for the Indian economy in the decade leading up to the pandemic.Sources said the higher growth comes despite the three shocks of Covid-19, Russian-Ukraine conflict, synchronised monetary policy tightening by most central banks leading to dollar appreciation and a widening current account deficit for net importing countries like India.
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