India’s economy expected to grow briskly on the back of Budget 2022-23: Finance Ministry 

India is the only major country that is expected to see a growth projection in 2022-23.

February 17, 2022

The latest budget announcements have strengthened the course of India’s economy.

The capex budget is 35.4% higher than estimated for the current year and is increasing to 4.1% of GDP.

The Budget for the current fiscal year has a target of achieving GDP growth of 11.1% with a GDP deflation rate of 3.0% - 3.5%.

Despite the third wave of Covid-19, the economic activity has maintained its resilience throughout, reflecting in profitable performances of important economic indicators.

India is expected to witness steady growth as compared to other large nations because of the government’s various initiatives in Budget 2022-23, as per the Finance Ministry’s Monthly Economic Review. 

The agriculture sector continues to see increasing growth in net area being utilized as well as crop diversification that will further help in strengthening food buffers for farmers by generating a heavy procurement volume at remunerative minimum support prices and income transfer by the means of the PM KISAN scheme, as stated in the Monthly Economic Review. 

The International Monetary Fund (IMF) has reduced its growth estimate for FY22 with it’s latest update being in January. India is the only major country that is expected to see a growth projection in the year 2022-23, according to the IMF. 

The latest budget announcements have strengthened the course of  India’s economy by the previous year’s budget. The capex budget is 35.4% higher than estimated for the current year and is rising to 4.1% of GDP including the grants-in-aid for the states, that can help intensify the the seven engines of Gatishakti to bridge the infrastructure gap, while also expediting the process of private investment in the country, the report said. 

The report also stated that the country’s economic activity has maintained its resilience throughout, despite the third wave of Covid, reflecting in profitable performances of important economic indicators such as PMI manufacturing, power consumption, exports and e-way bill generation.