Recent Trends in Indian Economy
Fastest Growing Economy
predicted to grow at a resilient rate of 6% in FY24, slightly easing from 7% in FY23, according to a
poll of 20 economists. Despite the slowdown, India will remain the fastest-growing major economy. India's
growth is expected to bounce back to
6.5% in FY25.
The poll also suggested that inflation will
fall within RBI's inflation target band of 2-6% to 5.3%
in FY24,
which will also support demand. The poll's forecasts ranged from 5.2% to 6.3%
with a
median estimate of 6.
The services sector is expected to rebound with YoY growth of 9.4
per cent in 2022-23
compared to8.8 per cent in 2021-22, driven by a recovery of the
contact-intensive service sector:
Fin Min said in a report . Despite
the moderation, India will remain the fastest-growing major
economy.
Employment
rate
increases to 36.9% in March quarter, up from 36.6% in December India's labour market has
witnessed an improvement with over 15 million
people entering the workforce in the last three
quarters, shared the Centre for Monitoring Indian
Economy. More than 11.2 million people gained
employment, indicating that a higher number of willing workers were able to secure jobs.
The country's employment rate increased to 36.9% in March 2023 from 36.6% in December
2022, While the number of unemployed persons dropped by almost two million highlighting that many
individuals were able to secure jobs.
Retail inflation
Retail inflation in India fell marginally but remained above RBI's 6 per cent upper tolerance band for the
second straight month in February 2023, with the Consumer Price Index pegged at 6.44 per cent. In
January, the retail inflation
was at 6.52 per cent.
CPI-based retail inflation in India eased further to 5.66 per cent in March as food inflation moderated
on account of falling vegetable prices, offset in part by surging cereal prices
Retail inflation in India fell marginally but remained above RBI's 6 per cent upper tolerance band for
the second straight month in February 2023, with the Consumer Price Index pegged at 6.44 per cent. In
January, the retail inflation
was at 6.52 per cent.
The consumer
food price index (CFPI) moderated to 4.79 per cent, down from 5.95 per cent in
February 2023 and 7.68 per cent in March 2022. Rural
inflation stood at 5.51 per cent while urban
inflation stood at 5.89 per cent in the month of March
High growth rate.
IMF
division chief Daniel Leigh on Tuesday reposed faith in the Indian economy and
said that it is a
"very
strong economy."He said that India is one of the bright spots in the
global economy right now
with a high growth rate which is 6.8 in 2022.
Let's not forget this is one of the bright spots in the
global economy right now.
Such
a high growth rate and it is moderating down to 5.9 with a -.2 revision
compared to
January. IMF, lowered its growth projection for
2023-24 to 5.9 per cent from 6.1 per cent earlier
but despite a significant drop, India continues
to be the fastest-growing economy ithe world, the
World Outlook figures revealed.
Output of core sectors
The production of eight infrastructure sectors expanded at 6 per cent on an annual basis in February 2023
as all sectors barring crude oil saw positive growth,
according to official data released on Friday.
The
eight sectors had grown at a four-month high of 7.8 per cent in January 2023
and 5.9 per cent in
February 2022.
The production of fertilizers, coal,
electricity, cement, steel, refinery products and natural gas increased in
February 2023 over the corresponding month of last .
To conclude, Indian economy is Gaining momentum emerged from the pandemic stronger than
expected and has gained momentum since the second quarter of the current fiscal even as year-on-year
growth rates do not reflect this pick-up due to the impact of statistical base effects, Reserve Bank of India
said in its report.
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