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NIPFP Revises India's GDP Growth Forecast for FY25 to 6.9-7.1%.

Economy Business | Dated: 01 Nov 2024

On 25th October 2024, the New Delhi-based economic think tank, National Institute of Public Finance and Policy (NIPFP), released its "FY2024-25: Mid Year Macroeconomic Review." The institute has revised India's Gross Domestic Product (GDP) growth forecast for Financial Year 2024-25 (FY25) to 6.9-7.1%, down from the earlier estimate of 7.1-7.4% in the April review.

🎯 Key Highlights:

  • - According to the report, Capex contracted by 19.5% during April-August 2024 compared to the same period in 2023, mainly due to the election code of conduct.

💡 Other Important Facts:

  • (i) The report mentions that aggregate demand growth (GDP) in the 1st Quarter (Q1: April-June) of FY25 moderated to 6.6% Year-on-Year (Y-o-Y), owing to a contraction in government spending and net exports, despite an increase in private consumption growth.
  • (ii) The report also projects that average annual inflation will remain at 4.3%, slightly above the Monetary Policy Committee (MPC) target of 4%.

📚 Test Your Knowledge:

Recently, NIPFP revised India's GDP growth forecast for FY25 to:

Correct Answer: 6.9-7.1%

🚀 Quick Recap:

About National Institute of Public Finance and Policy (NIPFP)

  • Chairman- Dr. Urjit Patel
  • Headquarters: New Delhi