Reuters reports from New Delhi.India said on Tuesday that its economy will grow by 6% to 6.8% in the financial year that starts on April 1. This is less than the 7% growth that was expected for the current year because exports are likely to suffer from a slowdown in the rest of the world.
In its annual Economic Survey report, the government said that its base case for growth in 2023/24 was 6.5%, and nominal growth, which takes inflation into account, was predicted to be 11%.
Finance Minister Nirmala Sitharaman presented the survey to parliament before Wednesday’s annual budget. It is primarily a government assessment of how the economy performed over the previous year.
Since the COVID-19 pandemic, India’s economy has gotten better, but the Russia-Ukraine conflict has caused inflation and forced central banks, including India’s, to change the ultra-loose monetary policy they had during the pandemic.
The survey found that the rate of price increases is neither too high to slow down private spending nor too low to slow down investment, even though it is still above the inflation target set by the central bank for 2022–23.
(Aftab Ahmed reported more; Krishna N. Das and Tom Hogue edited.)