Indian Economy To Grow At 7% In 2023, Says Finance Ministry As per the ministry, macroeconomic stability is likely to receive a further boost in FY23 as the current account deficit is set to narrow from the year-beginning estimates
By Teena Jose
Opinions expressed by Entrepreneur contributors are their own.
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
The finance ministry report released on Monday stated that the Indian economy is expected to grow at 7% in FY23 despite global headwinds while retail inflation would moderate in line with wholesale inflation which fell to a 25 month low in January, as per a PTI report.
The monthly economic review by the ministry reportedly said that, "Supported by the gains from high services exports, the moderation in oil prices, and the recent fall in import-intensive consumption demand, India's current account deficit is estimated to fall in FY23 and FY24, providing a buffer to the rupee in uncertain times."
"This will provide a much-needed cushion to India's external sector at a time when the Fed is likely to raise rates further and ensure that India's external finances are not a major cause of concern," it further noted.
As per the report, the ministry also stated that, "With a manageable current account deficit and a growth rate highest among the major economies in FY23, the Indian economy has shown a new-found resilience in sailing through the turbulence caused by the pandemic and geopolitical stress."
As per the ministry, macroeconomic stability is likely to receive a further boost in FY23 as the current account deficit is set to narrow from the year-beginning estimates. With regard to growth, real GDP estimates for Q3 of 2022-23 reaffirm the ability of the Indian economy to grow on the strength of its domestic demand even as a rise in global uncertainties slows global output.
Moreover, the report added that the Indian economy witnessed a growth of 4.4 per cent in the third quarter that ended in December 2022.
