India’s FY23 Growth Updates

India’s FY23 Growth Updates

Ira Singh
31 May’23

India’s economy grew at 6.1 per cent in the fourth quarter of 2022-23, pushing up the annual growth rate to 7.2 per cent, official data showed on May 31, boosted by services and consumption, putting it among the world’s fastest expanding major economies. The South Asian nation is the world’s fifth-largest economy, and recently surpassed China to become the most populous country, according to sources.

Furthermore, according to official data released on 31 May, India meets fiscal deficit target of 6.4% of GDP for FY23 from 6.7% in the last financial year,as aimed by Finance Minister Nirmala Sitharaman, while announcing the annual budget for this fiscal year.

The introduction of goods and services tax (GST) reforms and broadening of the tax base have bolstered revenue collections.The government’s initiatives to promote digital payments and increase tax compliance have yielded positive results, leading to improved revenue generation.

This achievement reflects the government’s commitment to fiscal discipline and prudent financial management amidst a challenging economic landscape.