Current Affairs - Economy

The National Institute of Public Finance and Policy (NIPFP) has revised India's GDP growth forecast for FY25 to a range of 6.9-7.1%. This adjustment reflects a notable moderation in growth observed during the June quarter, largely due to a significant contraction in net exports and reduced government consumption, influenced by the election model code of conduct. Previously, NIPFP had estimated a higher growth range of 7.1-7.4%. The downgrade highlights the challenges facing the economy, including a reported 19.5% decrease in capital expenditure during the April-August 2024 period compared to the previous year.