New Delhi: As per data released by the National Statistical Office (NSO) on Tuesday, February 28, the Indian economy expanded by 4.4% from October to December 2022 and is projected to increase by 7% in the fiscal year 2022–23 that ends in March.

In the financial year 2021-2022, India's economy grew at 8.7 percent.

Dipti Deshpande, Principal Economist, CRISIL said: Our projections were slightly lower than the GDP growth of 4.4%. Although a moderating of GDP growth in Q3 FY23 was anticipated, the manufacturing sector's ongoing decline comes as a shock. While the spending momentum has persisted, it is worrying that the investment-to-GDP ratio has decreased from 34 in the previous quarter to around 32 levels. Even though imports and exports have both slowed down, net exports have been less of a drag on the economy in Q3 than they were in Q2.

It is crucial that domestic demand pick up speed as long as the external demand circumstances are poor. Positive improvements for aggregate demand include increasing rural earnings and improving rural demand. 

However, it is anticipated that some of the pent-up demand witnessed in recent quarters would begin to fade. Investment demand should be supported by the government's emphasis on capex and improved private sector investment intentions. In FY24, we anticipate a moderated GDP growth rate of 6.1%.

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