2.4 INDIA

The Indian economy has shown remarkable resilience during 2023 despite the challenges in the aftermath of the pandemic. According to the Economic Survey 2022-2023 released by the Indian government, real economic growth reached 7% during fiscal year (FY) 2022 ending March 2023, following 8.7% growth in FY 2021. The survey also projects baseline real gross domestic product (GDP) growth of 6.5% in FY 2023-2024. Credit growth to the micro, small, and medium enterprises (MSME) sector was high – over 30.5% on average during January to November 2023. The capital expenditure (CAPEX) of the central government, which increased by 63.4% in the first eight months of FY 2022-23, was another growth driver of the Indian economy during the year. The return of migrant workers to construction activities helped the housing market witness a significant decline in inventory in the third quarter of FY 2022-2023 compared with last year.