India to witness economic growth at 7.1-7.6% in FY23, says Deloitte

New Delhi, July 14 (KNN) Despite changes in the geopolitical situation across the world India is expected to grow at a rate of 7.1-7.6 per cent in the current fiscal year, said a report. 

According to Deloitte India's economic outlook - July 2022 report, India is likely to grow by 7.1-7.6 per cent in 2022-23 and 6-6.7 per cent in 2023-24.

"This will ensure that India reigns as the world's fastest-growing economy over the next few years, driving world growth," the report said. 

"The desire of global businesses to look for more resilient and cost-effective investment and export destinations during difficult times, among other factors, could work in India's favour," Rumki Majumdar, Economist at Deloitte India said. 

It noted that there was optimism in the beginning of the year which was jolted by a wave of Omicron infections swept through the country and Russia's invasion of Ukraine happened in February. 

These events aggravated the pre-existing challenges such as surging inflation, supply shortages, and shifting geopolitical realities across the world with no definite end in sight. 

"And the subsequent confluence of headwinds such as surging commodity prices and disruption in trade and financial transactions quickly deteriorated economic fundamentals that were trending up a few months back," the report said. 

Rising commodity prices, surging inflation, supply shortages, and shifting geopolitical realities across the world weigh on the growth outlook. Still, India will likely reign as the world's fastest-growing economy, it noted. 

Deloitte India said that it expects inflation and supply chain disruptions to remain entrenched for some time.   (KNN Bureau)