New Delhi : The Indian economy is on the right track to surpass the 7 per cent growth rate in the Fiscal Year 2023, according to a report by the State Bank of India.
SBI in its research report titled Ecowrap, pointed out that the growth will be primarily driven by the manufacturing sector.
India’s growth in the fourth quarter of FY23 is likely to be 5.5 percent, bringing the country’s growth for FY23 to 7.1 percent. This is consistent with the National Statistical Office’s (NSO) January advance estimates, which predicted 7 per cent growth for the fiscal year ending March 31, 2023, the report said.
SBI highlighted that the diverse patterns of growth emerging around the world are posing unprecedented challenges to policymakers, regulators, and economists in assessing the real rates of projected growth, not only for the current year (2023), but also for 2024 and 2025, as the inflation trajectory management for central banks has been elongated following the unexpected turn of events last year.
Amidst the global uproar, the report suggests that India is expected to pursue a different path of zeroing in on drivers of growth, looking for a renewed surge in resilient manufacturing while supporting the services sector to embrace enhanced efficiency.
The local consumption and investment are expected to benefit from improved prospects for agricultural and related activities, increased business and consumer confidence, and strong credit growth, while supply responses and cost conditions are expected to improve as inflationary pressures ease, Ecowrap report points out.
The Indian government’s emphasis on capital expenditure in the Union Budget 2023-24 is expected to attract private investment, strengthen job creation and demand, and boost our growth potential, according to the report.
The RBI estimates Q4FY23 Real GDP growth at 5.1 per cent, while the National Statistical Office (NSO) estimates FY23 growth at 7 per cent. The RBI forecasts GDP growth of 6.5 percent in 2023-24, with 7.6 percent in the first quarter (Q1).
