The Organisation for Economic Co-operation and Development (OECD) has forecast India’s GDP growth at 6.9 per cent for FY23. This is 120 basis points lower than the 8.1 per cent projection made in December. The lowest by a major bank or institution, saying the country had been adversely affected by Russia’s invasion of Ukraine.
This is below the Reserve Bank of India’s estimate of a 7.2% rise. India’s Gross domestic product (GDP) grew 8.7% in 2021-22, making it the fastest-growing major economy in the world. After recording the strongest GDP rebound in the G20 in 2021, the Indian economy is progressively losing momentum as inflationary expectations remain elevated due to rising global energy and food prices, monetary policy normalises and global conditions deteriorate.