Economic Trends in Agriculture and Industry

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Questions and Answers

What was the industrial credit growth rate in the most recent year compared to the previous year?

6.6 percent

8.5 percent (correct)

5.2 percent

4.1 percent

What is the projected inflation rate for India in FY25 according to RBI predictions?

4.1 percent

6.0 percent

5.0 percent

4.5 percent (correct)

Which external sector performance indicator showed improvement for India from 2018 to 2023?

Export Growth Rate

Logistics Performance Index Rank (correct)

GDP Growth Rate

Inflation Rate

Which sector is highlighted as needing focus for job and skill creation in India's growth strategy?

Agriculture Sector Signup and view all the answers

Which inflation rate is more recent for food inflation in FY24?

7.5 percent Signup and view all the answers

As of the end of March 2024, what is the external debt to GDP ratio for India?

18.7 percent Signup and view all the answers

In which of the following areas is Amrit Kaal’s growth strategy NOT focused?

Tackling inflation directly Signup and view all the answers

How much did domestic LPG cylinders' price decrease by in August 2023?

₹200 Signup and view all the answers

What is the estimated real GDP growth for FY25 according to the Economic Survey 2023-24?

6.5-7 percent Signup and view all the answers

By how much did GVA grow in FY24 at 2011-12 prices?

7.2 percent Signup and view all the answers

What was the reported percentage increase in retail inflation from FY23 to FY24?

1.3 percent Signup and view all the answers

What was the Current Account Deficit (CAD) as a percentage of GDP in FY24?

0.7 percent Signup and view all the answers

What was the policy repo rate held by the Monetary Policy Committee (MPC) in FY24?

6.5 percent Signup and view all the answers

How much did Scheduled Commercial Banks (SCBs) credit disbursal grow by the end of March 2024?

20.2 percent Signup and view all the answers

By what factor did agricultural credit increase from FY21 to FY24?

What external challenges did India manage to overcome while maintaining economic momentum in FY24?

Various external challenges Signup and view all the answers

What was the Compound Annual Growth Rate (CAGR) of nominal GDP between FY18 and FY24?

9.5 percent Signup and view all the answers

What was the increase in welfare expenditure from FY18 to FY24?

12.8 percent Signup and view all the answers

Which sector employed the highest percentage of the workforce according to the Periodic Labour Force Survey (PLFS)?

Agriculture Signup and view all the answers

What was the unemployment rate for individuals aged 15 and above in urban areas at the end of March 2024?

6.7 percent Signup and view all the answers

What is the Gini coefficient for the rural sector as of the latest data provided?

0.266 Signup and view all the answers

How much public investment as a percentage of GDP is estimated to generate 11 million jobs?

2 percent Signup and view all the answers

What was the average annual growth rate of agriculture and related sectors over the past five years at constant prices?

4.18 percent Signup and view all the answers

What was the CAGR of wages per worker in rural areas from FY15 to FY22?

6.9 percent Signup and view all the answers

Study Notes

Industrial Credit and Inflation

Industrial credit growth increased to 8.5 percent from 5.2 percent the previous year.
The agriculture sector faced difficulties due to extreme weather, which damaged crops and decreased farm output, impacting food prices.
Food inflation rose from 6.6 percent in FY23 to 7.5 percent in FY24.
The Reserve Bank of India (RBI) projects inflation to decrease to 4.5 percent in FY25 and 4.1 percent in FY26, assuming normal monsoons without external shocks.
The International Monetary Fund (IMF) forecasts Indian inflation at 4.6 percent for 2024 and 4.2 percent for 2025.
A reduction of ₹200 in domestic LPG cylinder prices in August 2023 led to LPG inflation entering a deflationary phase.

External Sector and Economic Outlook

India’s position in the World Bank’s Logistics Performance Index improved from 44th in 2018 to 38th in 2023.
Services exports increased by 4.9 percent to USD 341.1 billion in FY24, largely driven by IT/software services.
External debt remains sustainable, with an external debt to GDP ratio of 18.7 percent as of March 2024.
Key policy areas focus on job creation, agricultural potential, MSME challenges, green transition, corporate bond market improvement, and reducing inequality.
Amrit Kaal’s growth strategy emphasizes private investment, MSME expansion, agricultural growth, green financing, bridging educational gaps, and enhancing state capacity.

Economic Survey Highlights for 2023-24

Economic surveys serve as the Union government's report card summarizing the yearly economic development.
FY25's real GDP growth is conservatively estimated at 6.5-7 percent amid balanced risks.
India's real GDP grew by 8.2 percent in FY24, consistently exceeding 8 percent in three quarters.
Gross Value Added (GVA) grew by 7.2 percent in FY24, with net taxes at constant prices rising by 19.1 percent.
Retail inflation decreased from 6.7 percent in FY23 to 5.4 percent in FY24.
The Current Account Deficit (CAD) improved to 0.7 percent of GDP in FY24 from 2.0 percent in FY23.

Monetary Management and Financial Intermediation

The Monetary Policy Committee (MPC) maintained the policy repo rate at 6.5 percent to align inflation with targets while promoting growth.
Scheduled Commercial Banks (SCBs) disbursed credit reaching ₹164.3 lakh crore, a 20.2 percent growth by March 2024.
Agricultural credit grew by 1.5 times from ₹13.3 lakh crore in FY21 to ₹20.7 lakh crore in FY24.

A new welfare approach focuses on maximizing spending impact.
Digitization in healthcare and education notably increased welfare effectiveness from FY18 to FY24.
Nominal GDP grew at a CAGR of 9.5 percent, while welfare expenditure rose by 12.8 percent during the same period.
The Gini coefficient, reflecting inequality, decreased from 0.283 to 0.266 in rural areas and 0.363 to 0.314 in urban areas.
Urban unemployment rate for those aged 15+ fell to 6.7 percent in March 2024, compared to 6.8 percent the previous year.

Employment Distribution and Wages

Over 45 percent of the workforce is in agriculture, 11.4 percent in manufacturing, 28.9 percent in services, and 13.0 percent in construction.
Employment in the organized manufacturing sector has surpassed pre-pandemic levels.
From FY15 to FY22, rural wages grew at a CAGR of 6.9 percent, compared to 6.1 percent in urban areas.
Public investment equating to 2 percent of GDP could create 11 million jobs, predominantly for women.

Agricultural Growth

Agriculture and related sectors achieved an average annual growth rate of 4.18 percent at constant prices over the past five years.

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Description

This quiz explores key economic trends affecting the agriculture and industrial sectors, focusing on credit growth, inflation rates, and the impacts of climate on food prices. It examines the interplay between economic policies and agricultural output amidst environmental challenges. Test your knowledge on these critical issues in the current financial landscape.