In this scenario, GDP growth would drop from 3.3 per cent estimated for 2022 to 0.3 per cent in 2023. GDP would fall in the second half of this year before gradually picking up again from the second quarter of 2023 onwards.
It is significant in this context to note that Indian economy has been characterized by increasing domestic savings rate financing investment, with domestic savings rate reaching a high of about 38% of GDP in financing investment of 39% of GDP in 2007-08.