February 23, 2023
The country’s growth rate is expected to be at 6.8% for FY23
The growth rate is significantly above the global average
India's strong growth in factors such as digitization, prudent fiscal policy, and significant financing will contribute to the capital investments in the upcoming budget
Capital investment is being raised steeply for the third consecutive year by 33% to INR 10 trillion
India is expected to contribute 15% to global growth this year, making it a “bright spot” in the world economy, according to Kristalina Georgieva, the Managing Director of the International Monetary Fund (IMF). In an interview with the Press Trust of India, Georgieva predicted the country’s growth rate to be 6.8% for FY23.
Georgieva also projected a growth rate of 6.1% for FY24, which is slower than the previous year but still significantly above the global average. She noted that this growth rate is the fastest among major economies. Georgieva attributed India’s strong growth to factors such as digitization, prudent fiscal policy, and significant financing for capital investments in the upcoming budget. Overall, the IMF’s outlook for the Indian economy remains positive.
Regarding the Union Budget 2023-2024, Georgieva mentioned that the growth-supporting spending and investment in capital expenditures will develop a boost for India’s economy. Media reports said that capital investment is being raised steeply for the third consecutive year by 33% to INR 10 trillion.