India set to grow faster in the coming decade
1 min read . Updated: 31 Jan 2023, 05:52 PM IST
Premium- The survey projected GDP growth for 2023-24 at 6.5% but said it may vary in the range of 6-6.8% depending on risks pertaining to global economic and political developments
New Delhi: The Indian economy is set to grow faster in the coming decade once the global shocks of the pandemic and Russia-Ukraine conflict, causing a spike in commodity prices, settle, according to the Economic Survey for 2022-23 tabled in Parliament on Tuesday by finance minister Nirmala Sitharaman.
The survey projected GDP growth for 2023-24 at 6.5% but said it may vary in the range of 6-6.8% depending on risks pertaining to global economic and political developments. Nevertheless, it is slower than the 7% estimated for the current fiscal by the National Statistical Office (NSO).
“In the present decade, the presence of strong medium-term growth magnets provides optimism and hope that once these global shocks of the pandemic and the spike in commodity prices in 2022 fade away, the Indian economy is well placed to grow faster in the coming decade… similar to the growth experience of the economy after 2003," it said.
In the chapter medium-term outlook, the survey pointed out that with improved balance sheets of the banking, non-banking, and corporate sectors, a fresh credit cycle has begun, which is evident from the double-digit growth in bank credit over the past months.
It noted that India’s growth outlook seems better than in the pre-pandemic years and it is prepared to grow at its potential in the medium term. The international monetary fund in its Article IV Consultation report released last month estimated India’s potential growth at 6% over the medium term.
The survey said that strong medium-term growth magnets will aid India’s economic growth.
It further pointed out that the economy has started benefitting from the efficiency gains resulting from greater formalization, higher financial inclusion, and economic opportunities created by digital technology-based economic reforms.
The survey said India has an opportunity to benefit from the diversification of global supply chains. “The last few years have exposed multinational firms to unprecedented risks due to global trade tensions, pandemic-induced supply chain disruptions, and the conflict in Europe. With enabling policy frameworks, India presents itself as a credible destination for capital diversifying out of other countries. Thus, India’s growth outlook seems better than in the pre- pandemic years, and the Indian economy is prepared to grow at its potential in the medium term," it said.
