India Ratings cuts GDP growth forecast to 7 per cent for 2022-23

New Delhi India Ratings and Research (Ind-Ra) on Wednesday cut India’s GDP growth forecast for the 2022-23 financial year to 7 – 7.2 per cent from its earlier estimate of 7.6 per cent announced in January.
The rating agency said the 7.6 per cent growth projection announced in January 2022, is unlikely to hold due to the global geo-political situation arising out of the Russia-Ukraine conflict.
In the new report, Ind-Ra has created two scenarios with respect to the FY23 economic outlook basis certain assumptions.
In Scenario 1, the crude oil price is assumed to be elevated for three months, and in Scenario 2, the assumption is for six months, both with a half cost pass-through into the domestic economy.
Ind-Ra expects GDP to grow 7.2 per cent YoY in Scenario 1 and 7.0 per cent yoy in Scenario 2 in FY23, compared to its earlier forecast of 7.6 per cent.