Understanding India's Economic Growth Rate in 2022-23

Image Credit: Republic TV English

India’s economy is expected to grow at a rate of 7% in the fiscal year 2022- 23, according to the country’s Finance Minister, Nirmala Sitharaman. This prediction comes amidst a period of economic recovery following the impact of the COVID-19 pandemic.
Sitharaman has attributed this expected growth to a number of factors, including increased consumer demand, higher investment rates, and the government’s focus on infrastructure development. She has also noted that the country’s vaccination program has been successful in controlling the spread of COVID-19, allowing for economic activity to resume. India’s economy was hit hard by the pandemic, with the country experiencing a contraction of 7.7% in the fiscal year 2020-21. However, the economy has shown signs of recovery in recent months, with growth rates of 0.4% and 1.6% in the third and fourth quarters of 2020-21, respectively.
The predicted 7% growth rate for 2022-23 is in line with the country’s pre-pandemic growth rates, which averaged around 7.5%. This expected growth is also significant for India’s economic recovery, as it will create jobs and boost consumer spending. Sitharaman has also announced that the government is committed to supporting small and medium-sized businesses, as well as startups, which are seen as key drivers of economic growth. She has highlighted the government’s various schemes, such as the Startup India initiative, which aims to support the growth of these businesses.

Re-reported from the story originally published in Republic Tv English