NEW DELHI: S&P Global Ratings has further slashed India’s economic growth projection to 7% for FY23 due to global slowdown, geopolitical tension between Russia and Ukraine and inflationary pressure.
Earlier in September, the agency had made a growth forecast of 7.3% for the current fiscal and 6.5% for the next. “Global slowdown will have less impact on domestic demand-led economies such as India...
India’s output will expand 7% in fiscal year 2022-2023 and 6% in next fiscal year,” S&P Global Ratings Asia-Pacific chief economist Louis Kuijs said. Meanwhile, SBI Research expects FY23 economic growth at 6.8% as against the RBI’s projection of 7%. In addition, it estimated Q2FY23 growth at 5.8%. Earlier, ICRA had projected the September quarter GDP growth rate at 6.5%. RBI estimates India’s GDP to grow at 6.3% in the September quarter.
India will come out with its Q2 GDP numbers on November 30. CLI Index, a basket of 41 leading indicators which includes parameters from almost all sectors, based on monthly data shows falling economic activity after June 2022 to August 2022. Beginning September 2022, it signals a turning point with the increase in economic activity, making Q3FY23 GDP growth more optimistic.
“Several indicators suggest that the Indian economy is making resilient progress in Q2FY23 in spite of the drag from global spillovers, elevated inflation and some slackening of external demand as geopolitical developments take their toll on world trade,” SBI Research said in its report.