11-May-2025
Economy News
 
Indian economy in unexpectedly good shape. What it means for growth in the current fiscal
02-Jun-2023

As with the annual health check of any septuagenarian, National Statistical Office's (NSO) annual health check-up of the 75-year-old Indian economy on Wednesday is a mixed bag. But here's the surprise. Data reveals an exceptionally sprightly septuagenarian. Sure, there are some parameters that need to be worked on. The manufacturing sector, for instance, could do better, as could private investment. But these are offset by other factors that suggest a degree of robustness rare in a world where many major economies are struggling with every policymaker's nightmare - stagflation, where growth stagnates even as inflation rages. But, first, the numbers. NSO's provisional annual estimates for GDP in 2022-23 show that GDP grew at 7.2% in FY2023. This is higher than the 7% growth estimated in its second advance estimates on February 28, as well as RBI's estimate, also of 7%, and way above GDP growth in virtually every other major economy, including our favourite bugbear, China, that grew just 3% in 2022. In a scenario where, according to the baseline forecast of the International Monetary Fund's April 2023 World Economic Outlook, global growth is expected to fall from 3.4% in 2022 to 2.8% in 2023 - the lowest since 2001, except for the global financial crisis and the pandemic, this is unambiguously good news. Bar, of course, the disappointing growth of the manufacturing sector at 1.3%.

News Source:- https://economictimes.indiatimes.com/opinion/et-commentary/indian-economy-in-unexpectedly-good-shape-what-it-means-for-growth-in-the-current-fiscal/articleshow/100658673.cms