India Ratings slashes India's FY23 GDP forecast to 7%-7.2% from 7.6%

Ind-Ra's India GDP forecast cut comes a day after ICRA Ltd cut its FY23 growth forecast to 7.2 percent from 8 percent

India Ratings, on Wednesday, cut its real gross domestic product (GDP) growth forecast for FY23 to 7-7.2 percent from 7.6 percent seen earlier, on back of higher commodity prices due to Russia’s invasion of Ukraine.

“Since the duration of Russia-Ukraine conflict continues to be uncertain, we have 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,” India Ratings’ (Ind-Ra) Principal Economist