High import prices and elevated import demand amid weak external demand have resulted in negative net exports in real terms that have shown a sharp downward trajectory and prevented India’s real Gross Domestic Product (GDP) growth from crossing the pre-pandemic trend trajectory, the finance ministry said in its Annual Economic Review for 2022-23, on Thursday.
Volatility in global financial systems, sharp price correction in global stock markets, high magnitude of El-Nino impact, and modest trade activity and FDI inflows owing to frail global demand are factors that can constrain the pace of growth going ahead, it added.
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