NIPFP cuts India's FY25 GDP growth forecast

Citing growth moderation in the June quarter of FY25 on account of sharp contraction in net exports as well as government consumption due to the model code of conduct, Delhi-based think tank National Institute of Public Finance and Policy (NIPFP), in its mid-year review, revised downwards its growth forecast for India to 6.9-7.1 per cent.

- SHIVA RAJORA

Its earlier estimate of 7.1-7.4 per cent was given during the April review.

"Capex fell by 19.5 per cent during April-August 2024 compared to April-August 2023 due to the election code of conduct. It is expected to pick up in H2-2024-25," the review published on Friday said.

The review further noted that the rate of expansion in the economy is back to the high growth trend of 7-8 per cent observed prior to the slowdown since 2017-18. A pick up in private consumption and investment is likely to maintain the growth momentum.