Questions and Answers
What was the budgeted Gross Fiscal Deficit (GFD) for FY2025 as a percentage of GDP?
4.9%
How has the share of capital expenditure (capex) changed in FY2025 compared to previous estimates?
It has increased to 3.4% of GDP.
What was the trend in consumer price index inflation in India from FY2020 to FY2024?
Inflation decreased from 6.7% in FY2020 to 5.4% in FY2023, with a slight increase expected in FY2024.
What was the current account deficit as a percentage of GDP for FY2024?
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By what percentage of GDP is the government committed to lowering the GFD by FY2026?
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What percentage did the gross fiscal deficit of the central government reach in FY2021?
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How did the consolidated fiscal deficit of both the centre and states compare in FY2021?
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What contributed to India's manageable external vulnerabilities despite global economic challenges?
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What was the consolidated deficit as a percentage of GDP in FY2024?
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What was identified as a necessary response for managing the macroeconomic impact of the pandemic?
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Based on the content, what is likely needed to foster growth alongside macro stability in India?
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What was the GFD percentage for FY2024 based on provisional estimates?
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Compare the consumer price index inflation rates between FY2021 and FY2022.
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Which advanced economies' monetary policy stance has created spill-over risks for India?
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Which year recorded a current account deficit of -1.2% in relation to GDP?
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What role did the Reserve Bank of India play in relation to fiscal policies according to the provided content?
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What implication does a high gross fiscal deficit have for India’s economic health?
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What changes were observed in the GFD of states from FY2021 to FY2024?
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How has public-sector capital expenditure contributed to private-sector investment in India?
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What role does rural demand play in the overall consumption momentum in India?
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In what way has fiscal consolidation affected the cost of capital for the private sector?
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How has the moderation in inflation influenced inflation risk premiums?
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What is the significance of healthy balance sheets for corporates and banks regarding risk aversion?
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What are the targeted sectors for the production-linked incentive scheme in India?
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How do improvements in logistics and ease of doing business impact economic growth?
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What opportunities are being harnessed by India in the context of global supply chains?
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What factor has helped maintain buoyant services exports in India despite global challenges?
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How do geopolitical factors influence India’s role in global supply chains?
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What was the surplus percentage of India’s current account in the balance of payments during January–March 2024?
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What are the primary objectives of increasing agricultural productivity as outlined in the Union Budget 2024–25?
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By the end of FY2024, how much did India’s foreign exchange reserves rise to?
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Which areas have been prioritized to transform the agricultural sector according to the Union Budget?
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What was the deficit percentage of the Southwest monsoon rainfall for the year?
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How much funding has been allocated to the agriculture and allied sectors and rural development in the Union Budget?
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What was the percentage lower of the first advance estimates of kharif foodgrains production for FY2024 compared to the previous year?
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What initiative is proposed to link farmers to natural farming, and what is the expected outcome?
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How much was the growth in agricultural gross value added (GVA) pegged lower at for FY2024 according to the first advance estimates?
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What is the purpose of creating large-scale production clusters near major consumption centers?
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What was the rainfall percentage below normal during October–December 2023?
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What was the percentage below normal for rainfall during January–February 2024?
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What concerns were posed due to low reservoir levels during the rabi cropping season?
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Which regions of India experienced larger rainfall deficits as per the given climate data?
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What were the rainfall experiences in June and August 2023 compared to July and September 2023?
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Study Notes
Consumer Price Index Inflation in India
- CPI inflation percentages for FY2020 to FY2024 show annual averages of 4.8%, 6.2%, 5.5%, 5.4%, and 6.7% respectively.
Fiscal Response and Government Deficits
- Gross fiscal deficit (GFD) surged to 9.2% of GDP in FY2021 due to pandemic impacts; consolidated deficit was 13.3% of GDP.
- Provisional GFD for FY2024 is projected at 5.6%, down from 5.9% estimate; FY2025 budgeted at 4.9%, aiming for under 4.5% by FY2026.
- Capital expenditure share expected to rise to 3.4% of GDP for FY2025 to support growth and recovery.
External Balance and Current Account Deficit
- Current account deficit (CAD) for FY2024 is moderate at -0.7% of GDP, showing improvement and sustainability.
- Surplus recorded in Q1 2024 equivalent to 0.6% of GDP, attributed to lower trade deficits and higher services exports and remittances.
- Foreign exchange reserves reached $646.4 billion by end of FY2024.
Resilience of Agriculture to Climate Variability
- Southwest monsoon rainfall saw a 5.6% deficit; uneven distribution caused regional disparities in crop production.
- Kharif foodgrains production estimated down by 0.9% for FY2024; growth in agricultural gross value added (GVA) pegged at 1.8%-0.7%.
- Rainfall below normal during recent months leads to concerns about rabi crop output.
Investment Climate and Economic Growth
- Public-sector capex and improved private-sector investment are expected to drive economic growth, with rising consumption demand.
- Fiscal consolidation and proactive monetary policy aim to stabilize inflation, lowering costs for private investors.
- Corporate and financial institutions exhibit strong balance sheets, reducing risk aversion.
Agricultural Sector Priorities and Budget Allocation
- Union Budget 2024–25 focuses on productivity improvements in agriculture, allocating ₹1.5 lakh crore for agricultural and allied sectors, and ₹2.7 lakh crore for rural development.
- Initiatives include innovative agricultural research, new crop varieties, natural farming promotion, digital infrastructure, and shrimp production enhancement.
- Plans to connect 1 crore farmers to natural farming and establish bio-input resource centers to lower input costs.
Agriculture Productivity Enhancements
- Emphasis on sustainable practices aimed at producing more efficiently while balancing farmer income and consumer food prices.
- Proposed creation of large-scale vegetable production clusters to improve supply chain efficiency and distribution.
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Description
This quiz explores key economic indicators in India from FY2020 to FY2024, focusing on inflation rates, fiscal responses to government deficits, external balance, and agricultural resilience. Dive into the statistics and trends that shape the Indian economy during this period.