Current Affairs - Economy

India's industrial production growth rate in March 2024 was 4.9%, as reported by the Ministry of Statistics and Programme Implementation. This figure represents a decrease from the 5.7% growth recorded in February 2024. Despite the slowdown, the Index of Industrial Production (IIP) for the fiscal year 2023-24 showed a modest increase, reaching 5.8%. The manufacturing sector played a crucial role in this growth, with specific areas such as basic metals, pharmaceuticals, and other transport equipment contributing significantly to the overall industrial output.

India Ratings and Research have raised their GDP growth estimate for FY25 to 7.1%. This upward revision is attributed to robust government spending, improved corporate and banking sector health, and a potential increase in private corporate capital expenditure. The agency also notes that despite these positive factors, challenges such as uneven consumption demand and global economic sluggishness could impact growth dynamics. The focus on sustained real wage growth is highlighted as crucial for a more inclusive and sustainable consumption recovery, reflecting the complexities within India's economic landscape.

The Organisation for Economic Co-operation and Development (OECD) has raised India’s GDP growth forecast to 6.6% for the fiscal year 2024-25. This upward revision is attributed to increased public investment and improved business sentiment, driving domestic demand and economic growth.

India has reduced the windfall tax on domestically produced crude oil from Rs 9,600 to Rs 8,400 per metric ton, effective May 1. This adjustment reflects a decrease in the tax burden on crude oil producers, aimed at fostering a conducive environment for the oil industry while ensuring reasonable taxation.

The National Institute of Public Finance and Policy (NIPFP) predicts India's GDP growth for the fiscal year 2024-25 to be 7.1%. This forecast is based on high-frequency models and reflects the emphasis on fiscal discipline, tax buoyancy, and compression of revenue expenditure as highlighted by NIPFP.