OECD pegs India’s FY23 GDP growth at 5.5%
GS Paper - 3 (Economy)
India’s real gross domestic product (GDP) could grow 5.5% in FY23, lower than 8.1% in 2021-22, the Organization for Economic Cooperation and Development (OECD) said. In its Economic Outlook for Southeast Asia, China and India, the agency said that China’s economy is seen growing 5.1% in both FY22 and FY23.
- Driven by infrastructure spending and border reopenings, the GDP of emerging Asia - China, India and the 10 members of the Association of Southeast Asian Nations (ASEAN)- is projected to grow 5.8% this year, following a 7.4% expansion in 2021 and a 0.8% contraction in 2020.
- The Ukraine war adds to inflation and supply chain risks facing an emerging Asia attempting to break out of the Covid-19 slump.
- Inflation, notably rising energy and food prices, and supply-chain disruptions present an ongoing risk to the recovery, OECD said.
- Governments in the region need to implement effective macroeconomic and structural policies to safeguard their economies, continue to improve citizen’s well-being and accelerate progress to achieve the Sustainable Development Goals.
- One of the main obstacles to bond-market development in India is limited investor base; insufficient liquidity in the secondary market, OECD noted.