Economic Growth and Inflation Trends FY2024

The current account surplus was equivalent to 0.6% of GDP, attributed to climatic shocks.

$646.4 billion.

5.6% deficit.

<p>0.9% lower.</p> Signup and view all the answers

<p>1.8%.</p> Signup and view all the answers

<p>9% below normal.</p> Signup and view all the answers

<p>33% below normal.</p> Signup and view all the answers

<p>Concerns about rabi output.</p> Signup and view all the answers

<p>The primary driver of growth momentum in FY2024 was a 9% growth in investment, particularly in gross fixed capital formation.</p> Signup and view all the answers

<p>In FY2024, inflation moderated to an average of 5.4%, down from 6.7% in FY2023.</p> Signup and view all the answers

<p>The government implemented export restrictions, excise duty cuts, and released foodgrains from buffer stocks.</p> Signup and view all the answers

<p>The cumulative increase in the policy repo rate was 250 basis points.</p> Signup and view all the answers

<p>The construction and manufacturing sectors both experienced high growth rates of 9.9% each.</p> Signup and view all the answers

<p>Global food and energy prices caused the average CPI inflation to surge to 6.7% in FY2023.</p> Signup and view all the answers

<p>Core inflation, excluding food and fuel, dropped below 4% during the last four months of FY2024.</p> Signup and view all the answers

<p>The tightening of monetary policy helped reduce inflation to 5.4% in FY2024.</p> Signup and view all the answers

<p>MPCE stands for Monthly Per Capita Consumption Expenditure and is important as it helps identify disparities in living standards between urban and rural populations.</p> Signup and view all the answers

<p>Rural MPCE as a percentage of Urban MPCE shows a declining trend, starting from a higher percentage and declining over the years.</p> Signup and view all the answers

<p>The Rural MPCE in FY2012 was 1,984, compared to the Urban MPCE of 6,459, showing a significant difference in consumption expenditure.</p> Signup and view all the answers

<p>In FY2023, the Rural MPCE was 1,430, indicating a possible stagnation or slight improvement compared to previous years, but still significantly lower than Urban MPCE.</p> Signup and view all the answers

<p>The FY2005 Rural MPCE was 1,054, which signifies a growth from FY2000 but indicates a slower pace compared to subsequent urban increases.</p> Signup and view all the answers

<p>The percentage of Rural MPCE in relation to Urban MPCE for FY2023 is approximately 22.1%.</p> Signup and view all the answers

<p>The consistent decline in Rural MPCE compared to Urban MPCE underscores the urgent need for targeted policies to enhance rural economic conditions.</p> Signup and view all the answers

<p>In FY2010, the Urban MPCE was 6,459 while the Rural MPCE was significantly lower, indicating over a $5,000 difference which suggests stark economic inequality.</p> Signup and view all the answers

<p>75 lakh additional connections.</p> Signup and view all the answers

<p>99.4% completion.</p> Signup and view all the answers

<p>49,857 km sanctioned.</p> Signup and view all the answers

<p>All inhabited un-electrified villages had been electrified.</p> Signup and view all the answers

<p>2.9 crore households.</p> Signup and view all the answers

<p>₹3.8 lakh crore.</p> Signup and view all the answers

<p>1.1 lakh km sanctioned and 69,507 km completed.</p> Signup and view all the answers

<p>8,290 km completed.</p> Signup and view all the answers

<p>It has improved the attractiveness of private-sector investment, leading to an expected acceleration.</p> Signup and view all the answers

<p>It contributes to broad-based consumption demand momentum, enhancing overall economic growth.</p> Signup and view all the answers

<p>It has eased pressures on the cost of capital for the private sector, enabling more investment.</p> Signup and view all the answers

<p>It has helped contain inflation risk premiums, promoting a more stable investment climate.</p> Signup and view all the answers

<p>They help lower risk aversion, facilitating more lending and investment in the economy.</p> Signup and view all the answers

<p>It enhances production capacities in key sectors, driving growth and attracting investments.</p> Signup and view all the answers

<p>They have driven a realignment of global supply chains, enhancing India's attractiveness as a low-cost production source.</p> Signup and view all the answers

<p>These improvements are anticipated to strengthen growth forces and attract foreign investments.</p> Signup and view all the answers

<p>The Pradhan Mantri Janjati Unnat Gram Abhiyan will be launched.</p> Signup and view all the answers

<p>NABARD will facilitate funding for shrimp farming and exports.</p> Signup and view all the answers

<p>The purpose is to boost shrimp farming and improve its export potential.</p> Signup and view all the answers

<p>Women-specific skilling programmes will be organized.</p> Signup and view all the answers

<p>The National Cooperation Policy will be formalized.</p> Signup and view all the answers

<p>Factors included moderation in inflation, a sustainable external balance position, financial stability, and healthy corporate balance sheets.</p> Signup and view all the answers

<p>The investment-led growth process enhanced economic resilience and drove robust growth due to continuous reforms and sound macro policies.</p> Signup and view all the answers

<p>Although India faced lingering geo-economic fragmentation and high debt globally, it managed to achieve growth due to its internal strengths.</p> Signup and view all the answers

<p>Improvements in public expenditure quality supported effective resource allocation and enhanced the overall macroeconomic environment.</p> Signup and view all the answers

<p>A sustainable external balance helps shield the economy from global shocks and enhances investor confidence.</p> Signup and view all the answers

<p>Orderly financial markets foster stability and investor confidence, which in turn encourages investment and growth.</p> Signup and view all the answers

<p>India's rapid growth position enhances its global influence and attracts foreign direct investment, impacting international trade and relations.</p> Signup and view all the answers

<p>Fiscal consolidation led to improved financial discipline, allowing for more efficient resource allocation and long-term economic stability.</p> Signup and view all the answers

<p>The projected growth rate for India in FY2025 is 7.2%, posing challenges for inflation management due to underlying risks from geopolitical factors and agricultural stagnation.</p> Signup and view all the answers

<p>Despite increased resilience to climate events, agricultural GVA growth has decelerated and foodgrains production has stagnated due to frequent weather disturbances.</p> Signup and view all the answers

<p>Technology is crucial for improving agricultural yields and sustainable input usage, but its adoption faces challenges due to India's high dependence on agriculture for employment.</p> Signup and view all the answers

<p>It provides insight into rural employment demand, helping to gauge overall rural economic health.</p> Signup and view all the answers

<p>Geopolitical factors exerting upward pressures on oil prices and climate change amplifying structural impediments in agriculture are significant risks.</p> Signup and view all the answers

<p>The challenges include frequent weather disturbances affecting food prices and lingering structural impediments that slow agricultural GVA growth.</p> Signup and view all the answers

<p>They are deflated by the CPI-rural inflation to enhance comparability.</p> Signup and view all the answers

<p>Reducing dependence on agriculture could facilitate the adoption of advanced farming technologies and enhance capital formation, supporting overall economic development.</p> Signup and view all the answers

<p>It helps negate seasonal variations, allowing for a more accurate year-over-year comparison of rural economic performance.</p> Signup and view all the answers

<p>Softening CPI and core inflation below 4% may provide more room for economic policy adjustments but can also create uncertainty regarding future inflation trajectories.</p> Signup and view all the answers

<p>It shows the relative prices of food to non-food items, impacting farmers' income and purchasing power.</p> Signup and view all the answers

<p>Indicators like scooter sales, tractor sales, and agricultural exports show significant expansion.</p> Signup and view all the answers

<p>Stagnant foodgrains production could threaten food security, increase inflation pressures, and undermine economic stability due to rising commodity prices.</p> Signup and view all the answers

<p>One significant challenge is the increased frequency of weather disturbances, which disrupt agricultural productivity and hinder GVA growth.</p> Signup and view all the answers

<p>Low reservoir levels can adversely affect crop prospects and agricultural productivity.</p> Signup and view all the answers

<p>Strategies should include adopting technology-enabled cropping practices and reallocating resources to reduce dependency on traditional farming subsidies.</p> Signup and view all the answers

<p>They reflect the confidence of rural populations in their economic conditions and future prospects.</p> Signup and view all the answers

<p>This comparison helps assess the performance and momentum of the rural economy over a specific period.</p> Signup and view all the answers

<p>They indicate agricultural investment and productivity, which are vital for sustaining rural livelihoods.</p> Signup and view all the answers

<p>Higher bank credit to agriculture suggests increased financial support for rural development and farming operations.</p> Signup and view all the answers

<p>India's agricultural exports have remained around $50 billion since FY2022, with FY2024 recording $48.8 billion.</p> Signup and view all the answers

<p>Rice (including basmati) and sugar account for more than one third of total agricultural exports.</p> Signup and view all the answers

<p>The World’s Largest Decentralised Grain Storage Plan (WLGSP) was launched to reduce post-harvest losses.</p> Signup and view all the answers

<p>Government measures helped keep total agricultural exports only modestly lower than previously, despite curbs.</p> Signup and view all the answers

<p>PACS act as procurement centers and supply sources for fair price shops, helping farmers reduce transportation costs.</p> Signup and view all the answers

<p>New initiatives were launched to strengthen the agricultural supply chain, which could help contain food inflation volatility.</p> Signup and view all the answers

<p>India's agricultural exports in FY2023 were $50.2 billion, showing a slight decline to $48.8 billion in FY2024.</p> Signup and view all the answers

<p>The curbs aimed to improve domestic availability and manage price pressures but resulted in only a modest decrease in exports.</p> Signup and view all the answers

<p>The WLGSP can significantly reduce post-harvest losses and help farmers avoid distress sales, allowing for better pricing.</p> Signup and view all the answers

<p>The primary goal was to strengthen the agricultural supply chain to increase farmers' income and stabilize food prices.</p> Signup and view all the answers