Economy to grow 7.5% in FY23, will be world's fastest growing: PM Modi

India’s real gross domestic product (GDP) is set to grow 7.5 per cent in the current fiscal year (FY23) and this will make it the fastest-growing major economy in the world, Prime Minister Narendra Modi said on Thursday, while virtually addressing the BRICS Business Forum.

This is the first time a real GDP growth projection has been given for the year by the government in the ongoing current financial year. The Union Budget gives out the nominal GDP figure, and the government usually goes by the Reserve Bank of India’s real GDP projection, which stands at 7.2 per cent for FY23.

The PM’s forecast is in line with the World Bank’s forecast but lower than the International Monetary Fund’s much more bullish projection of 8.2 per cent.

“We are expecting growth of 7.5 per cent this year, which will make us the fastest-growing major economy,” the prime minister told the BRICS Business Forum. “The role of the BRICS nations is more important than ever before in the post-Covid world,” he said.

BRICS stands for the international grouping of emerging economies Brazil, Russia, India, China, and South Africa.

The prime minister also said his government has brought about transformative changes to enable technology-led growth, in sectors such as space, new economy, green energy, and data.

Modi said that even during the Covid pandemic, steps were taken by the Centre to improve the ease of doing business by reducing the compliance burden on companies. He invited businesses from BRICS nations to invest in India’s $1.5-trillion National Infrastructure Pipeline.