ICRA cuts India’s FY23 GDP growth forecast to 7.2%

Ratings agency ICRA has lowered India’s FY23 GDP growth forecast to 7.2 per cent from an earlier projection of 8 per cent.

Besides, the rating agency projected GDP expansion in FY22 at 8.5 per cent, which is modestly lower than the National Statistical Office’s (NSO’s) second advance estimate of 8.9 per cent.

Following the elevated commodity prices and fresh supply chain issues arising from the Russia-Ukraine conflict, as well as the renewed lockdowns in parts of China, we have pared our forecast of India’s real GDP growth in FY2023 to 7.2 per cent from 8 per cent, said Aditi Nayar, Chief Economist, ICRA.

Higher prices of fuels and items such as edible oils are likely to compress disposable incomes in the mid to lower income segments, constraining the demand revival in FY2023.

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