Current Affairs - Economy - Discussion

Goldman Sachs revised India's GDP growth forecast down to 6.7% for 2024 and 6.4% for 2025. The downgrade was driven by a significant 35% reduction in central government expenditure and slower real consumption growth. Despite these challenges, the potential easing of monetary policy by the Reserve Bank of India in late 2024 could provide some relief to the growth outlook. This adjustment by Goldman Sachs highlights the impact of fiscal policy on economic projections.