Muristek
New Delhi, June 2
SBI Research has projected the Indian economy to grow at 7.5% in 2022-23, an upward revision of 20 basis points from its earlier estimate.
As per official data, the economy grew by 8.7% in FY22, net adding Rs 11.8 lakh crore in the year to Rs 147 lakh crore, the report said, adding this was however only 1.5% higher than the pre-pandemic year of FY20.
The forecast
The economy grew by 8.7% in FY22, net adding Rs 11.8 lakh crore in the year to Rs 147 lakh croreNominal GDP expanded by Rs 38.6 lakh crore to Rs 237 lakh crore, or 19.5% annualizedIn FY23 also, as inflation remains elevated in the first half, nominal GDP will grow 16.1% to Rs 275 lakh crore"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. This still translates into a real GDP growth of 7.5% for FY23, up by 20 basis points over our previous forecast," SBI chief economist Soumyakanti Ghosh said on Thursday.
Nominal GDP expanded by Rs 38.6 lakh crore to Rs 237 lakh crore, or 19.5% annualised. In FY23 also, as inflation remains elevated in the first half, nominal GDP will grow 16.1% to Rs 275 lakh crore, he said.
The report basis its optimism on the rising corporate revenue and profit and the growing bank credit coupled with ample liquidity in the system.
On rising corporate growth, the report notes that in FY22, around 2,000 listed companies reported 29% top line growth and 52% jump in net profit over the previous year.
Construction sectors, including cement, steel, reported impressive growth in both revenue and net income with 45% and 53%, rise respectively in revenue.
Interestingly, the order book position remains strong, with construction major Lamp;T reporting 9% growth in order book position at Rs 3.6 lakh crore as of March, supported by 10% growth in order inflow of Rs 1.9 lakh crore in FY22 and Rs 1.7 lakh crore in FY21.
Similarly, the sector-wise data for April indicates that credit offtake has happened in almost all sectors led by personal loans registering 14.7% demand spike in April.