India’s growth rate Is expected to clock between 6.5 per cent and 7.1 per cent during the current financial year 2022-23, Deloitte said, adding that rising inflation and an anticipated global slowdown will have an impact on the Indian economy.
“India to post a 6.5-7.1 per cent growth during 2022-23 and 5.5-6.1 per cent the following year contingent on the revival of the global economy and improving economic fundamentals,” it said.
“The seemingly unending saga of global economic uncertainties has begun to negatively impact India’s main drivers of growth. So volatile is the current economic environment that if one is looking for certainties from the recent data releases, it is unlikely that a consistent outlook will emerge,” Deloitte added.
In October, India’s purchasing managers’ index or PMI for manufacturing as measured by S&P Global increased to 55.3 for India up from 55.1 in September, exceeding expectations of a slower growth of 54.9. This is the 16th straight month in a row that India’s manufacturing PMI has remained above 50. Any reading above 50 is considered as growth while a sub 50 score indicates contraction.
Meanwhile, the International Monetary Fund (IMF) has slashed India’s growth projection from the earlier 7.4 per cent to 6.8 per cent. However, in spite of that India will be the fastest growing major economy in the world.