India's GDP To Grow At 7.4 Per Cent In FY23, Continue At Same Level Next Year As Well: Nirmala Sitharaman

Sitharaman also stressed that political parties making pre-poll promises should make budgetary provisions for taking care of the expenditures and not push the burden on other entities

Nirmala Sitharaman said the global situation continues to be challenging and it is not the right time to throw caution to the winds as yet.

Finance Minister Nirmala Sitharaman on Friday said that India’s GDP will grow at 7.4 per cent this fiscal year and continue at the same level in FY24 as well, the PTI reported.

Sitharaman, who was speaking at the FE Best Banks Awards event in Mumbai, said, “Our own estimates have also shown based on the developments, that we are definitely at that range...7.4 (per cent) and that level will continue even next year.”

According to the report, the minister said the International Monetary Fund and the World Bank have projected India's growth to be the fastest for the next two fiscal years, and their estimates are in sync with that of the Reserve Bank of India (RBI) as well.

She said that the global situation continues to be challenging and it is not the right time to throw caution to the winds as yet.

The export sector will face difficulties as the global growth slows down, and the government will work with such entities to face the headwinds, Sitharaman added.

During the latest Monetary Policy Committee’s announcement, RBI Governor Shaktikanta Das said the India's GDP growth forecast retained at 7.2 per cent as the economy is still grappling with high inflation.

The real GDP growth projection for 2022-23 is retained at 7.2 per cent with Q1- 16.2 per cent, Q2-  6.2 per cent, Q3 -4.1 per cent,  and Q4- 4 per cent with risks broadly balanced. The real GDP growth for Q1 FY23-24 is projected at 6.7 per cent, the governor said.

Meanwhile, Sitharaman, while underlining that the country needs a rigorous debate on the freebies side, stressed that political parties making pre-poll promises should make budgetary provisions for taking care of the expenditures and not push the burden on other entities.

Power discoms and generating companies have been seen to bear the brunt of such freebies as they get paid in part or in some cases not at all, despite having no role to play in the announcements, she said.