India's GDP to grow 7% this fiscal: FICCI survey

"Growth forecast has been downgraded from the 7.4% estimate in previous survey round (April 2022) owing to geopolitical uncertainty and its repercussions for the Indian economy," FICCI said

Industry body FICCI on Thursday said India's economy is estimated to grow 7% in the current fiscal, lower than the earlier projection of 7.4%, mainly due to the ongoing geopolitical uncertainties.

FICCI’s Economic Outlook Survey (July 2022) also said the policy rate of the Reserve Bank of India is expected to touch 5.65% by the end of this fiscal.

Currently, the policy rate (repo) is 4.9%.

The present round of survey was conducted in June that covered leading economists representing industry, banking and financial services sector.

The survey has projected an annual median GDP growth for 2022-23 at 7%, with a minimum and maximum growth estimate of 6.5% and 7.3%, respectively.

"Growth forecast has been downgraded from the 7.4% estimate in previous survey round (April 2022) owing to geopolitical uncertainty and its repercussions for the Indian economy," FICCI said.

The median growth forecast for agriculture and allied activities has been pegged at 3% for 2022-23 while industry and services sectors are anticipated to grow 6.2% and 7.8%, respectively.