India’s GDP Growth Will Slow to 6-6.8% According To Economic Survey: 10 Points Budget 2023

Budget 2023: According to The Economic Survey, The baseline Gross Domestic Product, or GDP, will grow By 6.5% in Real Terms In fiscal 2024.

According to the Economic Survey released by the government a day before the Union Budget presentation, India’s economic growth in fiscal 2024 is expected to be 6.5 percent, down from 7 percent in the current fiscal.

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1. The Economic Survey predicts 6.5 percent real GDP growth in fiscal 2024. Despite the lower growth forecast for the next fiscal year compared to the current one, India’s growth rate would still be the fastest among major economies.
2. “The projection is broadly comparable to estimates provided by multilateral agencies such as the World Bank, IMF, and ADB, as well as the RBI on a domestic level. The actual result for real GDP growth will most likely be in the range of 6% to 6.8%, depending on the trajectory of global economic and political developments “According to the Economic Survey.
3. The government expects India’s GDP growth to be in the 6-6.8% range, which is still lower than the 7% forecast for the current fiscal year, due to certain advantages the country has over other countries in the midst of the COVID-19 pandemic.
4. The Economic Survey forecasted limited health and economic fallout from China’s current Covid surge, leaving supply chains intact in many nations, including India.
5. According to the Economic Survey, more money is likely to flow into India as advanced economies experience “recessionary tendencies,” while India’s inflation remains below 6%. According to the government survey, this will result in “an improvement in animal spirits” and increased private sector investment.
6. However, recent mass layoffs by Big Tech have heightened fears of a recession.
7. According to the government, India has recovered quickly from the pandemic. Economic growth will be supported by “solid domestic demand and a pickup in capital investment,” according to the report. According to the survey, the inflation rate peaked at 7.8 percent in April 2022.
8. However, the risks are high, particularly due to global factors. According to the survey, a long period of inflation has forced central banks around the world to tighten financial conditions, which is now visible in the form of slower economic activity in advanced economies.
9. “Another threat to the outlook is the ongoing monetary tightening exercise. While the rate hike pace has slowed, major central banks have reiterated their hawkish stance on inflation “According to the Economic Survey.
10. Tomorrow, Finance Minister Nirmala Sitharaman will present the Union Budget. This is her fifth budget since 2019. She may change income-tax brackets to benefit the nation’s middle class and increase spending on the poor through programmes such as rural jobs.