Question
Which institution forecasted in its Monthly Economic
Review for July 2024 that India’s GDP growth would range between 7% and 7.5% for the fiscal year 2024-25?Solution
In its Monthly Economic Review (MER) dated 29th July 2024, the National Council of Applied Economic Research (NCAER) projected India's GDP growth to be between 7% and 7.5% for FY25, attributing this expectation to a normal monsoon and robust bank credit growth among other high-frequency indicators. Following a real GDP increase of 8.2% in FY24, driven by stable consumer demand and rising investment, the NCAER-National Stock Exchange (NSE) Business Confidence Index (BCI) also rose from 138.2 in Q4 of FY24 to 149.8 in Q1 of FY25. Meanwhile, the Consumer Price Index (CPI) inflation moved from 4.8% in May 2024 to 5.1% in June 2024.
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