India Ratings and Research stated that the country's economy is likely to grow at 7.6 per cent year-on-year in 2022-23.
The agency said Indian economy will show a meaningful expansion after a gap of two years, as the real GDP in 2022-23 is expected to be 9.1 per cent.
''However, the size of the Indian economy in FY23 will be 10.2 per cent lower than the FY23 GDP trend value.," the agency said.
The agency stated that if the impact of Omicron on the fourth quarter growth turns out to be greater than its estimate, then there could be some upside to 2022-23 growth.
India Ratings' Principal Economist and Director Public Finance Sunil Kumar Sinha stated the government and the RBI are expected to support the growth recovery.
The agency also expects the current account deficit in FY23 to widen to 2.3 per cent of GDP.
(With inputs from PTI)
