Context:
Economic Survey projects 6.5 to 7 per cent real GDP growth in contrast to RBI estimates.
Key Highlights:
- Indian economy grew over 7% for the 3rd consecutive year, driven by stable consumption and improving investment demand.
- India’s Current Account Deficit improved to 0.7% of GDP in FY24, down from 2.0% in FY23.
- At the end of March 2024, India’s forex reserves could cover more than 10 months of projected imports and 98% of external debt.
- Banking sector showcased double-digit credit growth, low NPAs, and improved asset quality.
- Retail inflation was maintained at 5.4%, the lowest since the pandemic, due to effective policy interventions and RBI measures.
- Inflation is expected to decline to 4.5% in FY25, assuming normal monsoon and no external shocks.
- Net FDI inflows declined from $42 billion in FY23 to $26.5 billion in FY24, with gross FDI inflows moderating slightly.
- India’s energy needs are projected to grow 2 to 2.5 times by 2047, with significant progress in renewable energy and emissions reduction.
- Agriculture grew at 4.18% annually over the past 5 years, industry grew at 9.5% in FY24, and the services sector contributed 55% to the economy in FY24.
Source: The Telegraph
Previous Year Question
With reference to the Indian economy, “Collateral Borrowing and Lending Obligations” are the instruments of:
[UPSC Civil Services Exam – 2024 Prelims]
(a) Bond market
(b) Forex market
(c) Money market
(d) Stock market
Answer: (c)
