New Delhi: Indian economy grew more than various experts and global agencies initially estimated for 2022-23. As per the provisional estimates released by the National Statistical Office (NSO) earlier this week, real GDP growth for 2022-23 stood at 7.2 per cent, higher than the 7 per cent projected.
The government expects an upward revision in the 2022-23 GDP numbers going ahead. And this was not a one-off year of good growth as several experts have painted a similar picture for the Indian economy for the current financial year 2023-24. Indian government projects 6.5 per cent growth for 2023-24 with various private estimates pegging similar numbers or a little below it.
Despite strong global headwinds and tighter domestic monetary policy tightening, various international agencies have forecasted India to be one of the fastest-growing economies in 2023-24, supported by robust growth in private consumption and sustained pick-up in private investment.
"GDP figures clearly demonstrate India's growth potential and resilience due to supportive policies and reforms as part of good governance initiatives," said Subhrakant Panda, President, the industry body FICCI.
Nilesh Shah, MD of Kotak Mahindra Asset Management said that the massive improvement in India's highways network expansion, and ports handling capacity, airports, power generation in the past decade have been paying dividends.
"This time growth is led by investment. not only the government infra investments but also the private capex has taken off," Shah said.
"These infra investments will sustain India's growth and will keep India as among the fastest-growing major economies in the world."
According to Ashish Chauhan, CEO of the National Stock Exchange, "India has done well in the first two months of 2023-24. As economic activities and consumption rise the country is expected to do well."
Industry body Confederation of Indian Industry sees India's 2023-24 growth at 6.5-6.7 per cent -- supported by strong domestic drivers and robust momentum in capital expenditure.
CII President R Dinesh said the Indian economy remains resilient in the face of a challenging global environment and major domestic roadblocks in the year ahead are not anticipated. Apart from the capex push by the government, he added that the resilience in the domestic economy comes from the healthy balance sheets of the corporates and a well-capitalised financial system.
"This is not just a one-year number. It is probably the coming together of a whole lot of initiatives being driven by the government...and a massive focus on execution than ever seen before," said Sanjay Nayar, General Partner, Sorin Investments.
He said there is nothing to be surprised that India is poised to become the greatest contributor to GDP among Asian peers.
This India is different from what it was in 2013. In a short span of 10 years, India has gained positions in the world order.
"By 2023, the IMF, the World Bank, Morgan Stanley they all believe we will be a USD 7.6 trillion economy. So in the next seven years, India will add another India and that will be as much to global GDP all of Europe will do in these years," said Janmejaya Sinha, Chairman of Boston Consulting Group.