Wednesday, May 31, 2023

India's GDP Growth Beats Estimates, Fiscal Deficit Narrows

There have been several pieces of good news for the India economy. First, the real GDP growth for FY2022-23 exceeded expectations at 7.2%, higher than the government's previous estimate of 7%. The fourth quarter growth was at 6.1%, compared to the RBI's estimate of 5.9%. Second, the government met its fiscal deficit target for FY23 at 6.4% of the GDP. Third, US-based investment banking firm Morgan Stanley, in its "transformation" report, said India has changed since 2013, and will emerge as a driver of Asian, global growth. We decode these numbers with experts and discuss the challenges for the economy as India eyes the $5 trillion economy.

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