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Union Finance Minister Nirmala Sitharaman said on Tuesday that India’s economy may grow by about 7% in FY23. He has also said that the next Union Budget will have to be prepared very carefully to maintain growth and control inflation.
This statement of the Finance Minister comes after the International Monetary Fund (IMF) released its latest World Economic Outlook Report on Monday. In this report, the economic growth forecast for India has been reduced once again.
The country’s GDP growth is expected to be 6.8% in the financial year 2023
The IMF has projected the country’s GDP growth for the financial year 2023 at 6.8%, cutting the current estimate by 0.60%, from the earlier estimated 7.4%.
The pace of growth will also have to be maintained in the next Union Budget.
In a fireside chat organized by the Brookings Institution in Washington DC, the minister said, “Therefore, the next Union Budget has to be prepared very carefully.” In which the pace of growth will also have to be maintained.
High energy prices are the biggest problems facing the economy in the future
The world economy is facing the twin challenges of high inflation and slow economic growth, amid tightening monetary policy and slowing global demand. Sitharaman said that high energy prices are one of the biggest problems facing the economy in the near future.
Sitharaman to present Union Budget for 2023-24 on February 1
The Center has projected a fiscal deficit of 6.4% of GDP for the financial year 2023, up from 6.7% last year. Sitharaman will present the Union Budget for 2023-24 on 1 February 2023.
India becomes the world’s fastest growing major economy
Most agencies, including the World Bank and the Reserve Bank of India, have lowered India’s growth forecast for the current fiscal due to the tightening of monetary policy and the uncertain external environment. However, India remains the fastest growing major economy in the world.
We expect India’s growth rate to be around 7% in this financial year
Sitaraman said, ‘I know that growth forecasts around the world are being revised less. We expect India’s growth rate to be around 7% in this financial year. More importantly, I have confidence in India’s relative and absolute growth performance for the rest of the decade.”
Negotiations are on with many countries for acceptance of RuPay
Sitharaman is in the US to attend the annual meetings of the International Monetary Fund and the World Bank. The minister said that Singapore and UAE have shown interest in adopting the RuPay payment system. He also said that India is in discussions with many countries to make RuPay acceptable in different countries.