NIPFP Forecasts India’s FY25 GDP Growth at 7.1%

The National Institute of Public Finance and Policy (NIPFP) predicts India’s GDP growth for the fiscal year 2024-25 to be 7.1%. Utilizing high-frequency models, NIPFP underscores the government’s fiscal consolidation efforts, emphasizing tax buoyancy and compression of revenue expenditure.

States’ Capex Growth

In the fiscal year 2023-24, states witness robust capital expenditure (capex) growth, attributed to substantial transfers from the central government. This highlights the effective utilization of resources at the state level, contributing to economic expansion.

Divergent Projections

While NIPFP’s forecast stands at 7.1%, other entities such as the Asian Development Bank (ADB) and Fitch Ratings estimate a growth rate of 7%. In contrast, the International Monetary Fund (IMF), S&P Global Ratings, and Morgan Stanley project a slightly lower growth rate of 6.8% for FY25, indicating varying perspectives on India’s economic trajectory.

IMF’s Appreciation of India’s Fiscal Discipline

The International Monetary Fund (IMF) commends India for maintaining fiscal discipline, particularly noteworthy in an election year. Emphasizing the significance of sound macro fundamentals, IMF’s Director for Asia and Pacific Department, Krishna Srinivasan, lauds India’s steady economic performance, projecting growth at 6.8% for 2024-25, driven by private consumption and public investment.

Piyush Shukla

Recent Posts

Top-5 Largest Jails in the World by 2025, Check the List

Prisons are meant to maintain law and order by housing criminals, but some of them…

6 mins ago

Top 5 Oldest Railway Stations of Uttar Pradesh, Know About Them

Railways have been an important part of connecting people and places across India. In Uttar…

1 hour ago

Which State is known as the Hydropower Capital of India?

India is blessed with many rivers and hilly regions that make it perfect for producing…

1 hour ago

Which is the Oldest Bank of India? Check the List of Top-10 Oldest Banks

Banking in India has a long and fascinating history that goes back more than two…

1 hour ago

Which District of Uttar Pradesh is Known as the City of Gajra?

Uttar Pradesh is a state full of unique towns and cities, each known for something…

1 hour ago

Largest District in Himachal Pradesh, Check the List of Districts of Himachal Pradesh

Himachal Pradesh, a beautiful state in northern India, is known for its scenic mountains, valleys,…

2 hours ago