India’s economic growth rate may fall to below 6 per cent in calendar year 2023 but inflationary pressures could ease marginally, according to a new report by Goldman Sachs. The agency has pegged India’s GDP growth rate in 2023 at 5.9 per cent from an estimated 6.9 per cent in 2022 as the boost from the reopening fades and monetary tightening weighs down domestic demand. For the fiscal year 2022-23, the investment bank hasn’t cut the GDP growth estimate for India, unlike many other agencies -the country’s economic expansion in the year has been pegged at 7.1 per cent, marginally higher than 7 per cent forecast earlier. The GDP expansion, however, would be significantly lower at 6 per cent in 2023-24. Consumer price index-based inflation, on the other hand, will moderate from an average of 7 per cent in 2022-23 to 5.6 per cent in 2023-24. “We expect growth to be a tale of two halves in (calendar) 2023, with a slowdown in the first half as the reopening boost fades and monetary tightening weighs on domestic demand,” Goldman Sachs economists said. FE
