The National Institute of Public Finance and Policy (NIPFP), an economic think-tank, announced on Friday its projection of India's GDP growth for the current fiscal year at 7.1 per cent. Utilizing high-frequency models, NIPFP derived this estimate.

In a series of tweets, NIPFP highlighted that the Indian government is pursuing fiscal consolidation through increased tax revenues and reduced expenditure.

NIPFP also noted that in the previous fiscal year, 2023-24, states experienced robust growth in capital expenditure, primarily due to substantial transfers from the central government.

While the Asian Development Bank (ADB) and Fitch Ratings have forecasted India's growth at 7 per cent, other institutions such as the International Monetary Fund (IMF), S&P Global Ratings, and Morgan Stanley have projected a slightly lower growth rate of 6.8 per cent for FY25.

(With PTI inputs)