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The survey said that in real terms, the economy is expected to grow at 7 per cent in the current financial year (2022-23), a downward revision from 2021-22, when the growth was 8.7 per cent in the previous financial year (2021-22). The fiscal deficit for 2022-23 is estimated to be 6.4 per cent of the GDP, the document said.

For India, this could make things difficult to set a nominal gross domestic product (GDP) number significantly higher than 10 per cent, with a deflator about 3.5 per cent. But this could also mean a higher GDP growth than anticipated at about 6.2 per cent, he said.

In a report, Acuite said India's annualised GDP growth in Q2 FY23 expectedly, expanded at a slower pace of 6.3 per cent year-on-year (YoY) as against 13.5 per cent in Q1 FY23, the latter led by the easing of favourable base impact created by the second Covid wave in the previous year.

While buoyant, it would still leave output about 7 per cent below its pre-pandemic potential trend, reflective of impact of the pandemic and adverse terms of trade shock from higher commodity prices in 2022. Growth is expected to slow in 2023-24, on the back of a sharp global slowdown, which is weighing on exports, and the progressive fiscal and monetary policy normalization at home, JP Morgan said.

In its India Development Update, the global financial institution said that the revised update was mainly due to greater resilience shown by the Indian economy against global shocks and better September quarter figures. The World Bank has revised its GDP estimate downwards for 2023-2024 from 7 per cent to 6.6 per cent.

In a research report S&P Global Ratings said India's forecast has been lowered by 0.5 percentage points for the next two fiscal years on slower global demand. Regional growth remains healthy overall. Meanwhile at global level, S&P Global Ratings said, global activity has held up surprisingly well so far despite a torrid pace of policy rate hikes and consistently high geopolitical uncertainties.

Commenting on price rise, the CEA said that retail inflation may have peaked and is likely to ease in the coming months. "Real GDP growth at 6.3 per cent in the second quarter of the current fiscal is in line with expectations. The Indian economy has continued on the recovery path from the pandemic. It is growing despite global monetary tightening," Nageswaran said.

The GDP had expanded by 8.4 per cent in September quarter of 2021-22, according to data released by the National Statistical Office (NSO). The Reserve Bank of India bulletin had projected that GDP growth would be estimated at 6.1 to 6.3 per cent in the September quarter of the current fiscal.

Strong loan growth should benefit net revenue, particularly as it will be coupled with wider net interest margins. However, it will put pressure on Core Equity Tier 1 ratios (CET1) should credit growth exceed Fitch's expectations, limiting buffers to absorb potential future losses.

The banks' officials are learnt to have told the Parliamentary panel that around 10 per cent GDP growth is needed to achieve the $5 trillion dollar economy target before 2030. However considering the prevailing global economic situation, this growth rate does not look possible, the banks' officials are learnt to have said.