The National Institute of Public Finance and Policy's (NIPFP) mid-year macroeconomic review forecasts India's annual economic growth in the range of 6.9-7.1%, similar to most other forecasts, such as the International Monetary Fund's (7%), World Bank's (7%) and Reserve Bank of India's (7.2%). Thus, the economy is expected to grow by around 7% in 2024-25 on top of 7% and 8.2% in 2022-23 and 2023-24 respectively. India is back on the high growth path that prevailed before growth decelerated from 2017-18 onwards due to repeated shocks culminating in a sharp contraction in 2020-21 on account of the covid pandemic.
However, there has been some growth moderation in the first quarter of 2024-25 due to a large trade deficit and also contraction in government consumption on account of restrictions under the election code-of-conduct. On the supply side, there has been a contraction in mining and electricity and a slowdown in construction, capital goods, consumer durables, tourism, travel and financial services.
Headline inflation fell below the 4% target in August but has increased again in September due to high inflation of food prices. NIPFP's annual inflation forecast at 4.3% is marginally lower than the Reserve Bank of India (RBI) forecast of 4.5%. The upside risk factors include persistent high food price inflation and a rebound of core inflation.
Esta historia es de la edición October 31, 2024 de Mint Mumbai.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor ? Conectar
Esta historia es de la edición October 31, 2024 de Mint Mumbai.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor? Conectar
India's economic performance is pretty robust on most counts
The economy's back on its high-growth path and fiscal consolidation is on track but our labour market remains a concern
We should be more receptive to paradigm-shifting ideas
Do we really have free will? Our brains are not wired to accept radical thoughts easily but we must try
We need to invest in nature for the sake of humanity's future
Money must flow into what saves rather than harms biodiversity
Is gold worth its weight amid our demat assets?
It has been a buzzy buy in recent times, with its price soaring over the past year. Investors, however, are likely to be better served by going for intangible forms of this precious metal
The country needs to map its informal economy better
We need more accurate data on enterprises that play a major role in employing people
Some states have started to slip off their fiscal correction paths
Populist outlays and capital expenditure have widened their budget deficits. They must tighten up
How a businessman in his 50s went gung-ho on MFs
From telecom retail to mutual fund: SIPs have bridged Singh's post-covid business slowdown
Principal disabled? Know your PoA rights
My father has been in coma following an accident. He had granted me a power of attorney (PoA) to manage his money, but the PoA has no specified duration. Is it legally valid for me to withdraw funds or conduct other transactions on his behalf for his medical treatment? -Name withheld on request
HOW SALMA HAYEK IS REDEFIMNG PHILANTHROPY
In the worlds of Hollywood, fashion and activism, there's never been anyone quite like Salma.
WORLD SAVINGS DAY: A REALITY CHECK ON INDIA'S DWINDLING HOUSEHOLD SAVINGS CRISIS
High inflation and easy credit lead to financial instability due to overspending and rising debt
