SBI raises India's GDP growth forecast for FY23 to 7.5 per cent

New Delhi: State Bank of India (SBI) in a research report released on Thursday revised India’s gross domestic product (GDP) growth forecast for the financial year 2022-23 to 7.5 per cent, which is 0.20 per cent higher from its earlier projection.

“Given the high inflation and the subsequent upcoming rate hikes, we believe that real GDP will incrementally increase by Rs 11.1 lakh crore in FY23,” SBI chief economist Soumya Kanti Ghosh said in the report. “This still translates into a real GDP growth of 7.5 per cent for FY23, up by 20 basis points over our previous forecast,” Ghosh noted in the report.

As per the National Statistical Office (NSO) data released earlier this week, India’s GDP growth stood at 8.7 per cent in the financial year 2021-22.

Real GDP or Gross Domestic Product (GDP) at Constant (2011-12) Prices in the year 2021-22 is estimated to attain a level of Rs 147.36 lakh crore, as against the first revised estimate of Rs 135.58 lakh crore for the year 2020-21, released on 31.01.2022.

The growth in GDP during 2021-22 is estimated at 8.7 per cent as compared to a contraction of 6.6 per cent in 2020-21, the NSO data showed. The NSO data was released on May 31.

Nominal GDP or GDP at Current Prices in the year 2021-22 is estimated to attain a level of Rs 236.65 lakh crore, as against Rs 198.01 lakh crore in 2020-21, showing a growth rate of 19.5 per cent.

SBI Research said it has revised upward the growth projection for the financial year 2022-23 by 20 basis points or 0.20 per cent on an expectation of higher corporate profit and revenue. The report also noted that the bank credit is likely to be higher.

The report noted that in the financial year ended March 2022, around 2,000 listed companies reported 29 per cent top-line growth and 52 per cent jump in net profit over the previous year.