Indian Economy Likely To Grow At 7.5 Per Cent, Says Finance Secretary As per reports, RBI has projected a growth rate of 7.2 per cent for the current financial year

By Teena Jose

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Pexels

Finance Secretary T V Somanathan, on Wednesday, said that the government is expecting the economy to grow at 7 to 7.5 per cent in 2022-23, in line with its projections made at the beginning of this financial year. India, reportedly, registered a growth of 8.7 per cent in 2021-22.

"We remain on course to meet the 7.4 per cent. We expect to achieve. This does not really reflect on what is expected to be annual real GDP growth. So 7 to 7.5 per cent in that range, 7.4 per cent is what the IMF has predicted," said Somanathan, in a statement.

While speaking after the release of the GDP numbers, which showed the economy, grew by 13.5 per cent in the April-June quarter, much below the RBI's projection of 16.2 per cent, Somanathan said that, "I am not going to make a prediction more accurate than RBI. But I am saying that today's figure in no way is throwing us off course or what was expected and what we continue to expect. It is fully consistent with that expectation of somewhere in the region of 7.7 per cent in real GDP growth. It is fully consistent with that."

As per reports, RBI has projected a growth rate of 7.2 per cent for the current financial year.

Commenting on the latest GDP data, economic affairs secretary, Ajay Seth, in a news report was quoted as saying, "Contact intensive services and construction witnessed an annual growth of 25.7 per cent and 16.8 per cent respectively, in the first quarter of 2022-23. The government has continued to support the investment activity with capital expenditure reach INR 1.75 lakh crore during the first quarter of 2022-23, which is 23.4 per cent of the budget estimate and 57 per cent higher as compared to the corresponding period of the last year. Fixed capital formation and private consumption are very strong in the first quarter and that augurs well for the economy."

Adding on to this, Somanathan said that, "The rising interest rate may not deter capital investment by the private sector. India's private sector is not very interest rate sensitive. Adding 75 to 100 basis points may not deter private investment."

Teena Jose

News Desk Reporter with Entrepreneur India

Teena is a post graduate in financial journalism. She has an avid interest in content creation, digital media and fashion.
Business News

JPMorgan Shuts Down Internal Message Board Comments After Employees React to Return-to-Office Mandate

Employees were given the option to leave comments about the RTO mandate with their first and last names on display — and they did not hold back.

News and Trends

Recur Club Announces Credit Offerings for Startups Beyond Series A and SMEs

In FY 24–25, the platform also plans to deploy an additional INR 2000 crores through its Recur Swift program for startups.

News and Trends

NeoSapien Secures INR 80 Lakhs on Shark Tank India 4 for AI Wearable

Founded in 2024 by Dhananjay Yadav and Aryan Yadav, NeoSapien aims to integrate AI into daily life through its wearable technology

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

News and Trends

Riceberg Ventures Launches $20 Million Fund to Support DeepTech Startups

The fund plans to invest in 25-30 startups globally, with an average ticket size of USD 0.5 million per investment

News and Trends

SEBI Clears JSW Cement's INR 4,000 Crore IPO

As per the Draft Red Herring Prospectus (DRHP), JSW Cement plans to allocate INR 800 crore from the fresh issue proceeds to partially finance a new integrated cement facility in Nagaur, Rajasthan.