The Finance Ministry released the monthly economic review for January 2023 which reported that the geopolitical tensions in Europe, spiralling energy, food and fertiliser prices, monetary tightening and inflationary trends have elevated the downside risks to the global economic outlook. Despite these headwinds, the Indian economy is estimated to grow by 7.0 per cent YoY in FY23.
The measures announced in the Union Budget FY24, such as a rise in capital expenditure, increased focus on infrastructure development, boost to the green economy, and initiatives for strengthening financial markets etc., are expected to promote job creation and spur economic growth.
In addition to this, easier KYC norms, expansion of DigiLocker services, and overall impetus on digitisation and last-mile connectivity are predicted to strengthen financial markets, the survey noted further.
During the fourth quarter of 2022-23, various high-frequency indicators (HFIs) pointed towards a slowdown in general, as monetary tightening appeared to have started weakening global demand.
This may continue in 2023 as various agencies have forecasted a decline in global growth. Apart from the lagged impact of monetary tightening, the uncertainties emanating from the lingering pandemic and relentless conflict in Europe may further dampen global growth
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