The Indian economy would grow at 7.5 percent in 2022-23, according to SBI Research, up 20 basis points from its previous forecast.

According to official figures, the economy increased by 8.7% in FY22, with a net addition of Rs.11.8 lakh crore in the year, bringing the total to Rs.147 lakh crore, according to the report, however this was only 1.5 percent more than the pre-pandemic year of FY20.

"We estimate that real GDP will increase by Rs.11.1 lakh crore in FY23 in view of rising inflation and subsequent rate hikes. This still amounts to 7.5 percent real GDP growth in FY23, up 20 basis points from our earlier projection "recast," Soumyakanti Ghosh, SBI's chief economist, said in a note on Thursday.

Nominal GDP increased by Rs.38.6 lakh crore, or 19.5 percent on an annualised basis, to Rs.237 lakh crore. He estimates that nominal GDP will expand 16.1 percent to Rs.275 lakh crore in FY23, as long as inflation remains high in the first half. The report's confidence is based on increased corporate income and profit, as well as expanding bank lending and abundant liquidity in the system.

According to the research note, nearly 2000 publicly traded companies reported a 29 percent increase in top line growth and a 52 percent increase in net profit in FY22 compared to the previous year. Cement, steel, and other construction-related industries recorded strong revenue and net income increases of 45 percent and 53 percent, respectively.

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