India’s gross domestic product (GDP) growth is projected at 7% for 2022-23 on the back of a rebound in services and farm sectors but may face strong headwinds in the months ahead due to the geopolitical situation and possible recession in several countries across the globe. The first advance estimate for 2022-23 released by the National Statistical Office (NSO) on Friday estimated GDP growth at 7%, a shade higher than the Reserve Bank of India (RBI), which pegged it at 6.8%. Last month, the central bank cut its GDP growth forecast for 2022-23 citing accentuated headwinds from protracted geopolitical tensions, tightening global financial conditions and slowing external demand.
Asian Development Bank (ADB) has also kept its outlook for India’s economic growth unchanged at 7 per cent for the current fiscal year.As per ADB, Despite recent global headwinds, the Indian economy is expected to grow by 7.0 per cent, as projected in the Update, supported by a strong domestic base.The Manila-based ADB in a report saw Asia expanding 4.2 per cent this year before accelerating to 4.6 per cent in 2023. These projections compare to the previously estimated expansion of 4.3 per cent and 4.9 per cent, respectively.