The Indian economy is on track to surpass 7 per cent growth rate in Fiscal Year 2023 with manufacturing being the key driver, according to a report released by the State Bank of India. State Bank of India's research report, Ecowrap released today (May 26) said that India's growth in the fourth quarter of FY23 is likely to be 5.5 per cent, which would lead to the country's growth for FY23 at 7.1 per cent.
This is in line with the advance estimates released by the National Statistical Office (NSO) in January that pegged growth for the year ended March 31, 2023, at 7 per cent. According to Ecowrap the variegated patterns of growth emerging across the globe is bringing forth unprecedented challenges before policymakers, regulators and economists in assessing the real rates of projected growth, not only during the current year- 2023- but continuing through 2024 and 2025 as the inflation trajectory management for central banks has been elongated after the surprising turn of events last year.
Amidst this global hullabaloo, the SBI Research report said India is expected to continue its showdown in pursuing a different pathway of zeroing in on drivers of growth, looking for a renewed surge in resilient manufacturing while supporting services sector to embrace enhanced efficiency.
Locally, domestic consumption and investment stand to benefit from stronger prospects for agricultural and allied activities, strengthening business and consumer confidence, and strong credit growth while supply responses and cost conditions are poised to improve as inflationary pressure is easing, the report said.