The global economy in 2024 exhibited steady but uneven growth, driven by contrasting sectoral performances and geopolitical pressures. Manufacturing output slowed globally, particularly in Europe and parts of Asia, due to supply chain disruptions and weak external demand. However, the services sector thrived, providing resilience to many economies. Inflationary pressures eased somewhat, though risks of…
Chapter 2 of the Economic Survey 2024-25 highlights key monetary and financial sector developments in India. The chapter underscores the role of monetary policy and financial institutions in maintaining macroeconomic stability and supporting growth. It also explores sectoral performance, innovations, and regulatory measures to strengthen financial markets. Despite global uncertainties, India’s financial system has shown…
Foreign investments have slowed due to political uncertainties, higher interest rates in developed countries, and active industrial policies in these regions. Changing Global Trade Dynamics Shifting Trade Patterns Global Economic Challenges and Risks Future Projections India’s Trade: Resilience Amidst Global Turmoil Contribution to Economic Growth Global Market Share India’s Overall Trade: Resilience Amidst Global Turmoil…
Low and stable inflation is crucial for sustaining economic growth. Governments and Central Banks aim to maintain moderate inflation while ensuring financial stability. The Reserve Bank of India (RBI) and the Central Government are committed to price stability. India maintained retail inflation at 5.4% in FY24, the lowest since the Covid-19 pandemic. Inflation trajectory Global…
Objectives of Monetary Policy The primary objective of monetary policy is to maintain price stability while keeping in mind the objective of growth. Various instruments of monetary policy, viz. cash reserve ratio (CRR) and statutory liquidity ratio (SLR) of banks, open market operations of the Central Bank, and imposition of credit ceilings, etc., are used…
India’s recent economic growth is marked by social and institutional progress through effective government programs in health, education, sanitation, digital empowerment, and rural quality of life. Women-led development and digital rural governance have improved living standards. Achieving developed country status by 2047 requires efficient programs, state initiatives, and community participation. Introduction India aims to become…
As per the Periodic Labour Force Survey data, Indian labour market indicators have improved in the last six years, with the unemployment rate declining to 3.2 per cent in 2022-23. Rising youth and female workforce participation presents an opportunity to tap demographic and gender dividends. The Formal employment has grown, with net payroll additions under…
Topic: GS3 – Indian Economy – Government Budgeting. Importance of This Topic from UPSC Perspective: In UPSC’s General Studies Paper 3, the topic of Government Budgeting in the Indian Economy is crucial.It assesses candidates’ understanding of fiscal policies, resource allocation, and economic priorities. A sound grasp of this topic is essential for comprehending the country’s economic…
The Union Government increased capital expenditure nearly three-fold in FY24 compared to FY20 to boost infrastructure. Beneficiaries include roads and railways. Reforms like PPPs, the National Infrastructure Pipeline, and PM-GatiShakti facilitated execution. Improved physical, digital connectivity, and social infrastructure enhanced quality of life. Sustained growth requires viable PPP projects and periodic asset assessments. Introduction India…
India, one of the fastest-growing economies, has only one-third of the global average carbon emission. India aims to achieve “Viksit Bharat” by 2047 and Net Zero carbon emissions by 2070. To achieve these goals, India focuses on High economic growth and Inclusive, environmentally sustainable development. The chapter reviews India’s initiatives and performance in addressing climate…