India may peg nominal GDP growth at about 11%

Government income: Labourers work at a construction site in Hyderabad. With nominal GDP of 10.6% to 11%, India’s gross tax collection growth rate is likely to be around 8% in 2023/2024, compared with 14.5% in the current year, due to base effect. — AP

MUMBAI: India is likely to peg its nominal gross domestic product (GDP) growth at around 11% in the annual budget next week, marking a slowdown from its estimate for the current fiscal year due to the prospect of weak exports, two government officials say.

Nominal GDP growth – which includes inflation and is the benchmark used to estimate tax collections – could be pressured by suppressed external demand next year due to a likely US recession, said the sources, who declined to be named as discussions are not yet public.