FICCI Adjusts India's Growth Forecast Amid Global Challenges

FICCI has revised India's GDP growth projection for the current financial year to 6.4%, down from a previously estimated 7%. This adjustment reflects a significant downturn compared to the 8.2% growth recorded in 2023-24. Economists highlight potential impacts from US economic policies and focus on reviving consumer spending.

The Federation of Indian Chambers of Commerce and Industry (FICCI) has adjusted its growth forecast for India, predicting a GDP growth of 6.4% for the financial year 2024-25. This marks a notable slowdown from the 8.2% growth observed in 2023-24.

The revised forecast, conducted through FICCI's Economic Outlook Survey, reflects broader market expectations. It highlights concerns over the potential short-term disruptions stemming from US economic policies, including trade tensions, tax cuts, and immigration norms, which could influence labor costs and inflation.

Economists emphasize the importance of stimulating consumer spending, reviewing tax structures, and investing in welfare programs to boost the economy. Additionally, improving agricultural productivity and infrastructure are seen as key strategies to enhance rural consumption and manage inflationary pressures.

(With inputs from agencies.)