The Indian economy is expected to recover from the pandemic-induced downturn, with the government estimating GDP growth of 8.7% for FY22. The International Monetary Fund (IMF) has slightly lowered its forecast to 8.2%. The government's recent budget and policy actions focus on reviving the economy by incentivizing domestic manufacturing and value-added activities, as well as investing in public infrastructure creation and modernization. The current trends of economic revival are evident in the growth data of key indicators such as total GST collections. The Union Budget for FY23 commits to boosting infrastructure creation with an enhanced capital expenditure commitment of 35.4%. The government is also focusing on addressing the consequences of inflation, geopolitical situations, and climate change. The budget aims to lay the foundation for economic growth for the next 25 years.
