Gross Domestic Product growth and forecast 

Based on the Economic Survey for the year 2022-23, it is predicted that India’s actual GDP growth will stay robust at 7%. Looking forward to the year 2023-24, the growth of the country’s GDP is expected to range between 6-6.8%, depending on economic challenges. These projections are key India economic indicators reflecting the nation’s economic health and future outlook.

The survey anticipates a GDP growth rate of 6.5% and a nominal GDP growth rate of 11%, for the fiscal year 2023 24. It highlights that despite encountering obstacles and stricter domestic monetary policies Indias projected growth rate of 6.5 to 7% reflects the nations inherent economic strength and its ability to adjust, rejuvenate and sustain factors driving growth. 

Growth in credit lending to the MSME sector (medium, small, and micro enterprises) has been the responsible for boosting growth. During the period between January to November 2022, credit lending to MSMEs averaged 30.5 percent. 

Foreign Direct Investment trends 

Starting April 1, 2023, India’s Foreign Trade Policy (FTP) will no longer include a five-year target. Instead, the focus will be on achieving $2 trillion in exports by 2030 through a shift from an incentive-based to a remission and entitlement-based framework. 

Over the past decade, India has seen consistent growth in its domestic market, leading to increased foreign direct investment (FDI) and a focus on establishing key components for sustainable economic development. This progress is reflected in improved global rankings for innovation and ease of doing business, suggesting a promising trajectory for future economic growth. 

In fiscal year 2021-22, India recorded its highest annual FDI inflows at $84,835 million, surpassing the previous year’s FDI by $2.87 billion. Additionally, FDI equity inflows for the same period totaled $59,825 million.  

FDI equity inflows into the manufacturing sector saw a significant increase of 76% in FY 2021-22, reaching $21.34 billion compared to $12.09 billion in FY 2020-21. 

For the fiscal year 2022 (April – December), total FDI inflows amounted to $55.27 billion, with FDI equity inflows at $36.74 billion. 

The top five countries contributing to FDI equity inflows into India in FY 2021-22 were Singapore (27.01%), the USA (17.94%), Mauritius (15.98%), the Netherlands (7.86%), and Switzerland (7.31%). 

The leading sectors for FDI equity inflows during FY 2021-22 included Computer Software & Hardware (24.60%), the Services Sector (12.13%), the Automobile Industry (11.89%), Trading (7.72%), and Construction (Infrastructure) Activities (5.52%). 

The states receiving the highest FDI equity inflows in FY 2021-22 were Karnataka (37.55%), Maharashtra (26.26%), Delhi (13.93%), Tamil Nadu (5.10%), and Haryana (4.76%). 

India’s import and export statistics 

India is making progress, towards reaching an export amount of $760 billion by the end of the fiscal year 2022 23 which is higher than the $676 billion achieved in the fiscal year 2021 22. 

During the year 2022 Indias exports of goods and services stood at a $422 billion and $254 billion respectively. By March 28 2023 Commerce Minister Piyush Goyal announced that Indian exports had exceeded $750 billion showing a 35 percent increase from the $500 billion reported in the year 2020 2021. 

Indias trade numbers have seen growth recently with the fiscal year 2021 22 marking the ever value of merchandise exports. The government is optimistic about hitting the target of $500 billion in exports in year 2023 aided by rupee denominated trade and recent bilateral free trade agreements (FTAs) with countries like United Arab Emirates (UAE) and Australia. 

In the year 2022 Indias merchandise exports reached a record high of $417.81 billion marking an increase of 43.18 percent from $291.18 billion in FY 2021. Concurrently merchandise imports rose to $610.22 billion up by 54.71 percent, from the years figure of $394.44 billion. 

Indias primary exports consist of engineering products, precious gems and jewelry, petroleum items, medicines, chemicals and electronic products. 

Regarding imports India mainly acquires petroleum and raw oil, electronic gadgets, gold, machinery and electrical devices, pearls, gemstones, semi precious metals and transportation equipment.