As recession sets in across the globe, India's growth forecast for FY24 is being cut down by organisations including the World Bank and International Monetary Fund. At the same time, India is expected to remain one of the world's fastest growing economies, since most developed economies are hit hard.
Citing domestic policies such as digitisation, India's Finance Minister has expressed confidence about 7 per cent growth for the country in FY23.
Digital infrastructure worked in India's favour
During a meeting of the International Monetary and Financial Committee, the minister Nirmala Sitharaman reiterated the number predicted in the economic survey.
She also tweeted about increased access to entrepreneurial opportunities via digital public infrastructure in India.
Sitharaman also highlighted India's role in the efforts to help out struggling economies such as Sri Lanka and Surinam.
Agencies not as optimistic
India's growth forecast for FY23 had been cut down by ratings agency Moody's to 6.8 per cent from 7 per cent.
The move had come after India's GDP growth slowed down to the lowest level in three quarters to 4.4 per cent in October-December 2022.
India's relatively stable performance amidst global headwinds has also been attributed to higher capital expenditure and the Reserve Bank of India's decision to go slow on rate hikes with a focus on growth.