Page 32 - The Indian EYE 011323

BUSINESS EYE JANUARY 13, 2023 | The Indian Eye 32

Indian economy to grow

at 7% in 2022-23 as per first

projections for the year

India’s average Gross Domestic Product (GDP) will touch $20 trillion in the next 25 years, according to Bibek

Debroy, chairman, Economic Advisory Council to Prime Minister (EAC-PM)

OUR BUREAU

New Delhi/Hyderabad
he first advance estimate of
gross domestic product (GDP)
Treleased on Friday shows that
the Indian economy is projected to
grow at 7% in the financial year 2022-
23 (FY23). Releasing the first ad-
vance estimates of National Income
for 2022-23, the National Statistical
Office (NSO) stated, “Real GDP or
GDP at Constant (2011-12) Prices
in the year 2022-23 is estimated at
Rs 157.60 lakh crore, as against the
Provisional Estimate of GDP for the
year 2021-22 of Rs 147.36 lakh crore,
released on 31st May, 2022.”
The estimate is lower than FY22
GDP growth of 8.7%. This can be
mainly attributed to poor perfor-
mance of the manufacturing sector,
the NSO said. Interestingly, the pre-
liminary projection is much lower
than the government’s earlier forecast
of 8%-8.5%, but above the Reserve
Bank of India’s projection of 6.8%.
The advanced GDP estimates Economic Advisory Council to the Prime Minister (EAC-PM) Chairman Bibek Debroy (ANI)
are an important figure for the gov-
ernment as they use it as a base to services segment is projected to grow Hyderabad, he said “In 2047, In- sources of growth, consumption, pri-
work out its economic growth and at 6.4 per cent in the current fiscal, up dia may have a per capita income vate investment, government expen-
fiscal projections for the next budget from 4.2% in 202-22. However, con- of $10,000 at current value of dollar. diture and net exports, he said: “The
due on February 1. As per the first struction sector growth is expected to The average size of the GDP will be global market is not going to be rosy.”
advance estimates of national income, decelerate to 9.1% from 11.5% a year approaching close to $20 trillion too. Referring to Goldman Sachs
manufacturing sector output is esti- ago. India, therefore, will be a transformed report which has forecast the rate
mated to decelerate to 1.6% in the Similarly, public administration, society.” of growth for India at 5.5%, he said,
current fiscal from 9.9% in 2021-22. defense and other services growth is Debroy said that economic indi- “Today, when India does 5.5%, there
Similarly, mining sector growth is estimated to drop to 7.9% this fiscal cators after Covid-19 have improved is despair all around. Just to illus-
estimated at 2.4% in the current fis- from 12.6% in FY22. in India and everyone is now looking trate how aspirations have changed.
cal as against 11.5% in 2021-22. The India’s average Gross Domestic to see rate of growth next year. “The However, with 5.5% growth, there
agriculture sector is projected to see a Product (GDP) will touch $20 tril- pandemic may have passed, but still has been an exponential rise in the
growth of 3.5% in FY2022-23, higher lion in the next 25 years, according to there is a lot of uncertainty around the per capita income.” He said to raise
than the 3% expansion recorded in Bibek Debroy, chairman, Economic world. There is uncertainty around the growth trajectory, India needs to
the previous financial year. Advisory Council to Prime Minister what is happening in China, the Rus- make land market more efficient.
Trade, hotel, transport, com- (EAC-PM). sia-Ukraine conflict, growth prospects “Similarly, we need to make the
munication and services related to Speaking virtually at the inau- in Europe and the US. Since India is labor markets and capital markets
broadcasting segment is estimated to gural session of the 57th annual con- not insulated, we will also face volatil- also more efficient,” Debroy said,
grow at 13.7% from 11.1% in 2021-22. ference of The Indian Econometric ity,” he added. adding that there is a need for a sim-
Financial, real estate and professional Society (TIES) at the University of Pointing out that there are four plified system of GST and direct tax.

www.TheIndianEYE.com