Budget Expectations Survey: What the market thinks about Nominal GDP growth?

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Finance Minister Nirmala Sitharaman will table the Union Budget for 2023-24 in the Lok Sabha on February 1. Moneycontrol conducted a survey of 30 market experts, including fund managers, analysts, heads of research, chief investment strategists and officers, to get responses on some important questions relating to the upcoming Union Budget.

Nominal GDP Growth

Nominal GDP growth for the year is expected to exceed the Budget 2022-23 estimate by a substantial margin. According to data released by the statistics ministry, India's nominal GDP is estimated to grow 15.4 percent this year. This is 430 basis points higher than the estimate of 11.1 percent made by the finance ministry in the Budget presented last year.

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Around 67 percent of participants surveyed by Moneycontrol said a nominal GDP growth of less than 7-9 percent is worse than expected.

A large section of the surveyed participants will be satisfied if the nominal GDP growth is at 9-11 percent, while 72.4 percent would consider 11-13 percent nominal GDP growth rate as great.

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