CRISIL Cuts FY23 GDP growth estimate

Published on July 02, 2022
Current Context: Credit rating agency Crisil,  lowered India's actual GDP growth forecast to 7.3% in FY23 from 7.8% earlier.
CRISIL Cuts FY23 GDP growth estimate to 7.3% from 7.8% on high Inflation
  • They have lowered GDP by seeing downward revision to higher oil prices, slowing export demand, and high inflation.
  • Apart from that it also included high commodity prices, elevated freight prices, and the largest demand-side driver of private consumption.
  • Besides, inflation was pegged at 6.8% in FY23 compared to 5.5% in FY22, Which results in reduced purchasing power.
  • As per the report, the main factors for such a broad-based rise in Inflation are an increase in domestic food production, high international commodity prices, and input costs.
  • This will also create an impact on the currency, and the rupee is also recorded as very low at 79 against the US dollar.
  • In addition to that, it has been estimated that global crude to average between USD 105-110 per barrel in FY23, which is higher by 35 percent compared to last year.
  • Apart from that RBI is expected to hike the rate by another 75 basis points during the fiscal year.

Question:

Q.1 As per the CRISIL rating agency, the real GDP growth forecast for India reduced to ________ in FY23.
a. 7.3%
b. 6.1%
c. 7.2%
d. 7.5%

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