India's gross domestic product (GDP) growth is expected to come in at 7.8 per cent in fiscal 2023, said ratings agency Crisil. According to the ratings agency, any potential upside due to the early end of a mild third wave of Covid-19 infections will be offset by the ongoing geopolitical strife stemming from Russia's invasion of Ukraine.
Currently, the geo-political crisis is creating a dampening effect on global growth and pushing up oil and commodity prices. The agency said that risks to growth are tilted to the downside. Spiking commodity prices, especially of crude oil, will have a bearing on India's macros, including the current account deficit and inflation. These would create headwinds to growth.
The good part is, the health of the financial sector is on the mend, with better capitalisation, profitability and asset quality, said Amish Mehta, Managing Director & CEO, Crisil at 'India Outlook, Fiscal 2023' event.