Sunil Kumar Sinha, Chief Economist and Director Public Finance, India Ratings said that the government and the Reserve Bank will support the growth of the economy. He said that the government is not in a hurry for fiscal consolidation.
India’s economy will grow at the rate of 7.6 percent in 2022-23
Indian Economy (Indian Economy) In the next financial year 2022-23, it will grow at the rate of 7.6 percent. India Ratings and Research (India Ratings and Research) has inferred this. The agency said on Thursday that after a gap of almost two years, the country’s GDP (GDP) meaningful expansion. Real GDP in 2022-23 is estimated to be 9.1 percent higher than 2019-20 (pre-Covid level). India Ratings report states that the size of the Indian economy will be 10.2 percent less than the trend value of GDP in the next financial year. “The main contributor to this shortfall will be the decline in private consumption and investment demand. The share of private consumption will be 43.4 percent and the share of investment demand will be 21 percent of the total decline.
Government is not in a hurry for fiscal consolidation
Earlier this month, the National Statistical Office (NSO) had said in its first advance estimate on GDP that the economic growth rate would be 9.2 percent in 2021-22. Due to this, the economy had declined by 7.3 percent in the last financial year.
Sunil Kumar Sinha, Chief Economist and Director Public Finance, India Ratings said that the government and the Reserve Bank will support the growth of the economy. He said that the government is not in a hurry for fiscal consolidation. This means that the fiscal deficit will remain high in 2022-23 as well. This will support the growth.
The agency estimates that the fiscal deficit will be between 5.8 per cent and six per cent in 2022-23. Sinha said inflation is currently on an upward trend and the economy’s revival is sluggish. In such a situation, in the near future, the central bank will avoid increasing policy rates.
economic momentum in favor of india
Deloitte CEO Puneet Ranjan said that the economic momentum is in favor of India. Ranjan said in an interview to ‘PTI-Bhasha’ that India will be the fastest growing large economy in 2022 and its growth rate is likely to be between 8 and 9 percent. He said, “This century is going to live in the name of India.” Emphasizing on the need to get rid of the corona virus immediately, he said that the epidemic is an obstacle in the matter of economic development.
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