Growth In 2nd Half Of FY23 To Fall To 4-4.5% Due To Headwinds: Report

According to India Ratings, the economic recovery in H1FY23 was resilient and encouraging, but challenges such as high inflation and weak demand (both domestic as well as external) are expected to pull down the economic growth.

The many rising headwinds, both domestic as well as external, will more than halve the GDP (Gross Domestic Product) growth to 4-4.5 per cent in the second half of FY2023, shaving off the better numbers in the first half, says a report.

In the first half of the current fiscal, the economy has grown at 9.7 per cent -- 6.3 per cent in the September quarter and 13.5 per cent in the previous three months -- and forecasts for the full year vary from a low of 6.6 per cent to 7 per cent.

According to India Ratings, the economic recovery in H1FY23 was resilient and encouraging, but challenges such as high inflation and weak demand (both domestic as well as external) are expected to pull down the economic growth to 4-4.5 per cent in H2FY23 from 9.7 per cent in the first half of the fiscal.

The agency however did not offer a full-year forecast.September quarter data indicate that despite the geopolitical uncertainty and fear of a global slowdown, the domestic economy has shown resilience. In fact, the Q2 growth print remains next only to Saudi Arabia's 8.6 per cent among the major economies, says the agency.