Annual Report 2023-24 Overview

Questions and Answers

What were the main factors that contributed to the soft landing of the global economy in FY2024?

The main factors included inflation moderation, steady growth, a decline in global food and commodity prices, and easing supply chain disruptions.

How did India's economic growth momentum in FY2024 compare to expectations?

India's growth momentum surpassed expectations amid supportive macro-financial conditions.

What macroeconomic issues persisted globally despite the avoided recession?

Lingering issues included geo-economic fragmentation, high debt levels, and rising risks from climate events.

What role did corporate balance sheets play in India's economic performance in FY2024?

Healthy corporate balance sheets contributed to financial stability and supported robust economic growth. Signup and view all the answers

In what ways did fiscal consolidation impact India's economy during FY2024?

Fiscal consolidation helped improve the quality of public expenditure and contributed to financial stability. Signup and view all the answers

What was the effect of continuous reforms on India's economic growth prospects?

Continuous reforms bolstered the investment-led growth process, enhancing India's growth prospects. Signup and view all the answers

How did the Indian economy demonstrate resilience to global shocks?

The Indian economy showed resilience through robust growth and stable macroeconomic conditions despite global challenges. Signup and view all the answers

What macro-policy settings are expected to sustain India's economic growth?

Sound macro-policy settings, including investment-led growth and fiscal discipline, are expected to sustain economic growth. Signup and view all the answers

What was India's GDP growth rate for FY2024 as per the provisional estimates?

8.2% Signup and view all the answers

Despite what challenges did India sustain a 7% or higher growth in FY2024?

Formidable headwinds from the global economy. Signup and view all the answers

What is the significance of the abbreviations FRE, SRE, and PE in the context of India's GDP estimates?

FRE stands for First Revised Estimate, SRE for Second Revised Estimate, and PE for Provisional Estimate. Signup and view all the answers

How did the GDP growth forecast for FY2024 change from first advance estimates to provisional estimates?

It increased from 7.3% to 8.2%. Signup and view all the answers

What was the trend of India's GDP growth from FY2020 to FY2024 based on the given figure?

The growth fluctuated, peaking at 9.7% in FY2021 before declining and stabilizing over subsequent years. Signup and view all the answers

In what year did India's GDP growth reach its highest point in the presented data?

FY2021. Signup and view all the answers

What initiative aims to enhance the socio-economic condition of tribal communities in India?

The Pradhan Mantri Janjati Unnat Gram Abhiyan aims to enhance the socio-economic condition of tribal communities. Signup and view all the answers

What was the average inflation growth rate mentioned for FY2024?

5.4%. Signup and view all the answers

How will the shrimp farming industry be bolstered in India according to the text?

A network of nucleus breeding centres for shrimp brood stocks will be established and funding through NABARD will be facilitated. Signup and view all the answers

Which organization provided the Global Trade Outlook and Statistics cited in the data?

World Trade Organization (WTO). Signup and view all the answers

What specific policies will be formalized to support the cooperative sector?

The National Cooperation Policy will be formalized for the systematic and all-round development of the cooperative sector. Signup and view all the answers

What does GDP stand for?

Gross Domestic Product. Signup and view all the answers

Which programs are intended to increase women's participation in the workforce?

Women-specific skilling programmes and promotion of market access for women self-help groups are intended to increase women's workforce participation. Signup and view all the answers

Which entity compiled the annual GDP estimates for India for 2023-24?

National Statistical Office (NSO) under the Ministry of Statistics and Programme Implementation. Signup and view all the answers

What does FY before a calendar year denote, according to the notes?

FY denotes the fiscal year or the 12-month period ending 31 March of the given year. Signup and view all the answers

How has the gap in Monthly Per Capita Expenditure (MPCE) between rural and urban areas changed from FY2012 to FY2023?

The gap narrowed from rural expenditure being 54.4% of urban expenditure in FY2012 to 58.4% in FY2023. Signup and view all the answers

What was the Compound Annual Growth Rate (CAGR) of rural expenditure compared to urban households between FY2012 and FY2023?

Rural expenditure had a CAGR of 9.2% while urban households had a CAGR of 8.5%. Signup and view all the answers

What was the unemployment rate in rural areas for FY2023 according to the Periodic Labour Force Survey?

The unemployment rate in rural areas for FY2023 was 2.4%. Signup and view all the answers

Since which fiscal year has the unemployment rate consistently declined in both rural and urban areas?

The unemployment rate has consistently declined since FY2018. Signup and view all the answers

What does a sustained increase in the labor force participation rate (LFPR) indicate regarding the rural economy?

A sustained increase in LFPR indicates more individuals are either working, seeking work, or available for work. Signup and view all the answers

What was the unemployment rate in urban areas for FY2023?

The unemployment rate in urban areas for FY2023 was 5.4%. Signup and view all the answers

How does the change in rural expenditure percentage relate to the overall economic performance in India?

The increase in rural expenditure indicates economic improvement and better living standards in rural areas. Signup and view all the answers

What conclusion can be drawn about the economic development trends between rural and urban households in recent years?

Rural households are experiencing faster growth in consumption and lower unemployment rates compared to urban households. Signup and view all the answers

What does the percentage of rural expenditure being 58.4% of urban expenditure suggest about consumer behavior?

It suggests that rural consumers are increasingly contributing to the economy, narrowing the consumption gap. Signup and view all the answers

Why is the narrowing of the rural-urban consumption gap significant for policymakers?

It is significant as it reflects improved economic equity and can inform strategies for sustainable development. Signup and view all the answers

What trend can be observed in the rural MPCE as a percentage of urban MPCE from FY2000 to FY2023?

The rural MPCE as a percentage of urban MPCE has experienced gradual fluctuations, with a notable decrease from 58.4% in FY2000 to 51% in FY2023. Signup and view all the answers

Identify the urban MPCE value for FY2012 based on the provided data.

The urban MPCE value for FY2012 is 3,773. Signup and view all the answers

What was the rural MPCE in FY2005 and how does it compare to its value in FY2010?

The rural MPCE in FY2005 was 1,984, which increased to 2,630 in FY2010. Signup and view all the answers

Calculate the average rate of increase in rural MPCE from FY2000 to FY2023.

The average rural MPCE increased from 1,054 in FY2000 to 1,430 in FY2023, showing roughly a $76 increase per year. Signup and view all the answers

Explain the significance of MPCE as a metric in assessing economic conditions.

MPCE is significant as it provides insights into the consumption patterns and economic well-being of households. Signup and view all the answers

What can be inferred about the MPCE values in FY2000 for rural and urban areas?

In FY2000, the rural MPCE was 1,054 while the urban MPCE was 6,459, indicating a substantial disparity. Signup and view all the answers

How did the rural MPCE in FY2023 compare to the urban MPCE in FY2010?

The rural MPCE in FY2023 was 1,430, which is significantly lower than the urban MPCE of 3,773 in FY2010. Signup and view all the answers

Describe the trend in overall MPCE growth observed from FY2000 to FY2023.

Overall MPCE growth indicates that urban areas have experienced higher growth rates compared to rural areas, exacerbating economic inequality. Signup and view all the answers

What was the rural MPCE in FY2010 and what percentage of the urban MPCE did it represent in the same year?

The rural MPCE in FY2010 was 2,630, representing approximately 56.8% of the urban MPCE. Signup and view all the answers

Study Notes

Global Economic Overview

FY2024 experienced a soft landing for the global economy, with inflation moderation supporting steady growth.
Avoided a global recession despite aggressive monetary tightening by major central banks.
Decline in global food and commodity prices contributed to easing of supply chain disruptions.
Remaining challenges include geo-economic fragmentation, high debt levels, and climate-related risks.

India's Economic Growth

India's economy showed remarkable resilience, achieving over 7% growth for three consecutive years.
GDP growth for FY2024 revised from 7.3% to 7.6%, and further to 8.2% as per provisional estimates.
Factors contributing to growth include moderate inflation, sustainable external balance, and sound macroeconomic policies.

Domestic Macroeconomic Developments

Macro stability indicated by continuous improvement in corporate balance sheets and orderly financial markets.
Fiscal consolidation and improvement in public expenditure quality further strengthened the economic outlook.
Commitment to continuous reforms supports investment-led growth.

Rural-Urban Consumption Dynamics

Monthly Per Capita Consumption Expenditure (MPCE) gap narrowed; rural expenditure at 58.4% of urban expenditure, increased from 54.4% in FY2012.
Rural households exhibited higher growth in expenditure (CAGR of 9.2%) compared to urban households (CAGR of 8.5%).

Employment and Labor Market Trends

Rural unemployment rate stood at 2.4% in FY2023, significantly lower than urban unemployment at 5.4%.
Both rural and urban unemployment rates have declined consistently since FY2018.
Labor force participation rate increased, reflecting a growing proportion of working or job-seeking individuals.

Initiatives for Economic Enhancement

Establishment of nucleus breeding centres to enhance shrimp farming and export potential.
Launch of the Pradhan Mantri Janjati Unnat Gram Abhiyan to uplift tribal communities' socio-economic status.
Formalization of National Cooperation Policy to promote cooperative sector development.
Implementation of women-specific skilling programs to enhance workforce participation and support women's self-help groups.

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Description

This quiz covers India's economic growth momentum compared to global trends in FY2024. It discusses the impact of monetary policies, inflation moderation, and supply chain dynamics. Test your understanding of recent economic developments and their implications.