India's economic survey forecasts GDP growth to slow down to 6.5 pct

NEW DELHI, Jan. 31 (Xinhua) -- India's finance minister Nirmala Sitharaman Tuesday tabled the Economic Survey 2023, which projected a 6.5-percent gross domestic product (GDP) growth in fiscal 2024 compared to 7 percent in the current fiscal year.

"The survey projects a baseline GDP growth of 6.5 percent in real terms in financial year 2024," the report by the ministry of finance said.

It added that the projection is broadly comparable to the estimates provided by multilateral agencies such as the World Bank, the International Monetary Fund, and the Asian Development Bank and by the Reserve Bank of India domestically.

"The actual outcome for real GDP growth will probably lie in the range of 6.0 percent to 6.8 percent, depending on the trajectory of economic and political developments globally," it said.

The economic survey, presented in the lower house of the Indian parliament, was released a day before the federal budget presentation.

The report cautioned that global economic prospects for the next year have been weighed down by unique challenges expected to impart a few downside risks.

"Multi-decadal high inflation numbers have compelled central banks across the globe to tighten financial conditions. The impact of monetary tightening is beginning to show in slowing economic activity, especially in advanced economies," it said.

"Besides this, adverse spillovers from the prolonged strains in supply chains and heightened uncertainty due to geo-political conflict have further deteriorated the global outlook," it added.