India's GDP growth down to 7% due to geopolitical uncertainties: FICCI survey

New Delhi, July 22 (KNN) India’s GDP growth is estimated to grow 7 percent in the current fiscal, lower than the earlier projections of 7.4 percent due to the current geopolitical uncertainties, FICCI said on Thursday.

FICCI in its Economic Outlook Survey also pointed out that the policy rate of the Reserve Bank which currently sitting at 4.9 percent is expected to touch 5.65 percent by the end of the current year.

The median growth forecast for agriculture and allied activities has been pegged at 3 percent for 2022-23 while industry and services sectors are expected to grow 6.2 percent and 7.8 percent, respectively.

The survey also laid emphasis on the reasons that pose a  threat to the India's economic recovery include rising commodity prices, supply-side disruptions, bleak global growth prospects with the conflict prolonging in Europe.

"Policy repo rate is forecast at 5.65 percent by the end of the fiscal year 2022-23, with a minimum and maximum range of 5.50 percent and 6.25 percent respectively," the survey said.

The survey has fixed the median forecast for CPI-based retail inflation rate at 6.7 percent for 2022-23, with a minimum and maximum range of 5.4 percent and 7 percent, respectively.

This is in line with the RBI's indicative trajectory put forth in the recent monetary policy announcement in June 2022, FICCI said.

Inflation levels are expected to slow down starting September 2022 and fall back into the 4 percent range only by June 2023, it added.

"With upside risks to inflation remaining on fore, the government should work out a comprehensive roadmap which may require action at multiple levels," the survey pointed out.  (KNN Bureau)