The pace of India’s economic recovery slowed in Q4 FY22 due to the continued normalization of the base effect and the possible impact of several factors including Omicron-led disruptions, supply chain issues, and surging global commodity prices. In Q4 FY22, real GDP grew by 4.1% YoY, supported by investment, exports, and private consumption. For FY22, the real GDP grew by 8.7% YoY, in line with our projection. We project real GDP growth to be around 7% YoY in FY23. Downside risks persist in the form of spillover from global growth slowdown, high commodity prices, rising domestic inflation, and expected monetary policy tightening by the RBI.