Economic Survey 2023: Indian economy to grow 6.5% next fiscal year

The Economic Survey 2022-23 said that the India's economy is projected to slow to 6.5 per cent in the fiscal year starting April but will remain the fastest growing major economy in the world as it fared better in dealing with the extraordinary set of challenges the globe has faced.

India's Gross domestic product (GDP) growth of 6.5% in 2023-24 compares with an estimated 7% expansion in current fiscal year (April 2022 to March 2023) and 8.7% in the previous year.

Like the rest of the world, India too faced an extraordinary set of challenges in tightening financial conditions and supply chain disruptions from a prolonged war in Europe but "withstood them better than most economies", the annual document detailing the state of the economy said.

The survey tabled in Parliament by Finance Minister Nirmala Sitharaman, stated that India is the world’s third largest economy in PPP (purchasing power parity) terms and fifth largest in terms of exchange rate.

Economy has nearly recouped what was lost, renewed what had paused, and re-energised what had slowed during the pandemic and since the conflict in Europe, it said.

India’s recovery from the pandemic was relatively quick, growth to be supported by solid domestic demand, pick up in capital investment, the Survey said but highlighted the challenge to rupee with the likelihood of further interest rate hikes by the US Fed.