The Organisation for Economic Cooperation and Development (OECD) has cut the economy growth for India to 6.9% in FY23 from 8.1% estimated earlier. This is below the Reserve Bank of India’s estimate of a 7.2% rise.
However, India’s Gross domestic product (GDP) grew 8.7% in 2021-22, making it the fastest-growing major economy in the world. Recently, the World Bank similarly severely pared India’s FY23 forecast to 7.5% from 8.5% in the April review.
“Real GDP is projected to grow by 6.9% in fiscal year (FY) 2022-23 and 6.2% in FY 2023-24, despite a pick-up of corporate investment facilitated by the Production-Linked Incentive Scheme,” OECD said in its latest economic outlook.
“After recording the strongest GDP rebound in the G20 in 2021, the Indian economy is progressively losing momentum as inflationary expectations remain elevated due to rising global energy and food prices, monetary policy normalises and global conditions deteriorate,” OECD added in the report.