Despite global headwinds, the Indian economy appears to be settled for greater growth in 2023 also. The economy is expected to come successfully out of the tough times prevailing across the globe. It may put up a strong performance in 2023 on the back of strong consumer demands, better corporate performances and moderation in inflation. However, this year will also be full of challenges and opportunities. The Associated Chambers of Commerce and Industry of India (Assocham) has said this in a just-released statement.
Financial year 2023-24 will also be encouraging
The industry body has said that despite global challenges including recession in many economies of the world and persistent geopolitical tensions, India is on track to achieve a growth rate of 6.8 to 7.0 per cent in the financial year 2022-23. According to the chamber, financial year 2023-24 may also see the same kind of encouraging scenes.
Strong domestic demand is propelling growth
Assocham has said that the global situation looks challenging, but the Indian economy is expected to remain strong. This is because of strong domestic demand, a healthy financial sector and sound balance sheets of companies. The industry body has said that there are early signs of better rabi crop yields, indicating a strong performance by the agriculture sector. This will have a positive impact on related industries like daily use goods, tractors, two-wheelers, speciality chemicals and fertilizers.
India may growth at 6.8% in 2022-23
Earlier, India’s central bank Reserve Bank of India (RBI) in its bimonthly Monetary Policy Statement, had produced an encouraging picture of the growth of Indian economy, which it said, could grow at 6.8% in 2022-23. The RBI Governor informed that the economy is projected to grow at 6.8 per cent in the current financial year 2022-23, with Q3 at 4.4 per cent and Q4 at 4.2 per cent.
Inflation is projected at 6.7 per cent next year
According to the RBI, the real GDP growth is projected at 7.1 per cent for Q1 of 2023-24 and at 5.9 per cent for Q2 of the year. In this way, India will be among the fastest-growing major economies in the world. Regarding inflation, the Governor stated that headline inflation is projected at 6.7 per cent in 2022-23. The Governor summarized the findings thus. GDP growth in India remains resilient and inflation is expected to moderate, but the battle against inflation is not over.
This artical was originally published by Newsonair.
