GDP growth in FY23 estimated at 7.4%: FICCI

While the threat from the COVID-19 pandemic is still looming, the continuation of Russia-Ukraine conflict is posing a significant challenge to global recovery

India's GDP is estimated to grow at 7.4% in the financial year 2022-23 with rising prices triggered by the Russia-Ukraine conflict posing as the biggest challenge to the global economic recovery, Federation of Indian Chambers of Commerce & Industry (FICCI)'s Economic Outlook Survey released on Sunday said.

According to the survey, the Reserve Bank of India (RBI) is likely to start a rate hike cycle in the second half of 2022, while a repo rate hike of 50-75 bps is expected by the end of the current fiscal.

The RBI is expected to continue supporting the ongoing economic recovery by keeping the repo rate unchanged in its April policy review, the survey said.

"The latest round of FICCI's Economic Outlook Survey puts forth an annual median GDP growth forecast for 2022-23 at 7.4% with a minimum and maximum growth estimate of 6% and 7.8% respectively," the industry body said.

The median growth forecast for agriculture and allied activities has been put at 3.3% for 2022-23. Industry and services sectors are estimated to grow by 5.9% and 8.5%, respectively.

However, it said, the downside risks to growth remains escalated.