Indian Economy -Civil Service Gurukul

Key Factors Behind the Rupee Depreciation
✅Strengthening US Dollar: The Dollar Index surged 1.24% to 109.84, reflecting increased investor confidence in the US economy. Robust job data, expectations of prolonged higher interest rates, and rising US Treasury yields have made the dollar more attractive.
✅Escalating Trade War Fears: US President Donald Trump’s tariffs on Canada, Mexico, and China have heightened global trade tensions. Canada and Mexico, which export over $840 billion worth of goods to the US, have announced retaliatory measures. China faces a potential 10% tariff, which has weakened the Yuan, indirectly impacting the Indian Rupee.
✅Foreign Institutional Investor (FII) Outflows: FIIs have been aggressively selling Indian assets since October 2024, withdrawing $11 billion in Q3 FY25, adding further pressure on the currency.
✅Widening Trade Deficit: India’s trade deficit has reached $188 billion, up 18% from FY24, reflecting the high import dependency, especially on crude oil.
✅RBI’s Intervention and Monetary Policy Outlook: The Reserve Bank of India (RBI) has been managing the currency volatility through forex interventions, selling $3.3 billion in reserves over the last seven weeks. However, with inflation concerns mounting, all eyes are on the upcoming RBI monetary policy review later this week

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🌟 Government Budgeting 🌟

Government Budgeting refers to the process through which the government plans its revenue and expenditure for a specific financial year. It is a vital tool for managing the economy, achieving policy objectives, and ensuring equitable distribution of resources.

💡 Key Features of Government Budgeting:

✅ Definition:

A government budget is a statement of expected revenue and proposed expenditure for a financial year.

It reflects the government's economic priorities, developmental goals, and welfare objectives.


✅ Components of the Budget:

1. Revenue Budget:

Revenue Receipts: Taxes (income tax, GST, etc.) and non-tax revenues (fees, dividends, etc.).

Revenue Expenditure: Day-to-day expenses like salaries, interest payments, and subsidies.



2. Capital Budget:

Capital Receipts: Loans, borrowings, and asset disinvestment.

Capital Expenditure: Spending on asset creation like infrastructure, education, and healthcare.




✅ Types of Budgets:

Balanced Budget: Revenue equals expenditure.

Surplus Budget: Revenue exceeds expenditure.

Deficit Budget: Expenditure exceeds revenue.


✅ Budgetary Tools:

Fiscal Policy: Adjustments in government spending and taxation to influence the economy.

Deficit Financing: Borrowing to bridge the gap between revenue and expenditure.


✅ Objectives of Budgeting:

Promote economic growth and stability.

Reduce inequalities through welfare measures.

Provide for infrastructure development and public services.

Ensure fiscal discipline and reduce deficits.


📌 Additional Notes:

The Union Budget is presented by the Finance Minister in Parliament on 1st February every year.

State governments also prepare budgets, aligning with local priorities and resources.



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✅ UPSC Prelims Multiple Choice Questions

1. What does the revenue budget primarily include?
a) Borrowings and disinvestment proceeds.
b) Taxes and non-tax revenues along with day-to-day expenditures.
c) Spending on infrastructure and asset creation.
d) Allocations for state governments.

Answer: b) Taxes and non-tax revenues along with day-to-day expenditures.


2. What is a deficit budget?
a) When revenue equals expenditure.
b) When revenue exceeds expenditure.
c) When expenditure exceeds revenue.
d) When borrowing is unnecessary.

Answer: c) When expenditure exceeds revenue.


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🌟 Pradhan Mantri Jan Dhan Yojana (PMJDY) 🌟
Pradhan Mantri Jan Dhan Yojana (PMJDY), launched on 28th August 2014, is a flagship financial inclusion program by the Government of India. Its primary aim is to provide universal access to banking services, promote financial literacy, and ensure financial security for every household in the country.
💡 Key Features of PMJDY:
✅ Universal Banking Access:
Opening of zero-balance bank accounts for all households with the provision of RuPay debit cards.
Access to savings accounts, deposits, remittance facilities, and insurance coverage.
✅ Insurance and Overdraft Facilities:
Accidental Insurance Cover: ₹2 lakh under the RuPay debit card.
Life Insurance Cover: ₹30,000 for eligible beneficiaries.
Overdraft facility of up to ₹10,000 is available to one account holder per household.
✅ Financial Literacy and Digital Inclusion:
Promotes financial literacy by empowering individuals with basic financial knowledge.
Encourages the use of digital payment methods to reduce dependency on cash.
✅ Direct Benefit Transfers (DBT):
Seamless transfer of government subsidies and welfare benefits directly into beneficiaries' accounts, reducing leakages and corruption.
✅ Expansion of Banking Infrastructure:
Extensive network of Bank Mitras (banking correspondents) in rural and remote areas.
Strengthens the foundation for a cashless economy under the Digital India initiative.
📊 Impact of PMJDY:
Over 50 crore bank accounts opened as of 2023, with a total balance exceeding ₹2 lakh crore.
Over 67% of accounts are in rural/semi-urban areas, supporting financial inclusion in underserved regions.
High participation of women, with 55% of accounts held by female beneficiaries.
📌 Additional Notes:
PMJDY has played a crucial role in boosting financial literacy, increasing access to credit, and enabling inclusive economic growth.
The initiative aligns with the Sustainable Development Goals (SDGs), particularly Goal 1 (No Poverty) and Goal 10 (Reduced Inequalities).
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✅ UPSC Prelims Multiple Choice Questions
1. What is the primary aim of Pradhan Mantri Jan Dhan Yojana (PMJDY)?
a) To promote entrepreneurship among rural women.
b) To provide universal access to banking services and financial inclusion.
c) To establish rural cooperative banks.
d) To provide insurance to farmers.
Answer: b) To provide universal access to banking services and financial inclusion.
2. Under PMJDY, what is the maximum accidental insurance cover provided through the RuPay debit card?
a) ₹1 lakh
b) ₹2 lakh
c) ₹5 lakh
d) ₹50,000
Answer: b) ₹2 lakh
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🌟 Diamond Imprest Authorization (DIA) Scheme 🌟
The Diamond Imprest Authorization (DIA) Scheme is a specialized initiative under India's Foreign Trade Policy (FTP) aimed at facilitating the export and import of diamonds. The scheme caters to the diamond and jewelry industry, which plays a significant role in India's economy and exports.

💡 Key Features of the DIA Scheme:

✅ Purpose:

Enables authorized exporters to import rough diamonds duty-free, which can later be processed and exported as polished diamonds.
✅ Eligibility:

Exporters with a proven track record in the diamond and jewelry industry.
The scheme is regulated and authorized by the Directorate General of Foreign Trade (DGFT).
✅ Benefits:

Duty-Free Imports: Allows exporters to import rough diamonds without paying customs duties.
Boosts Competitiveness: Reduces production costs, making Indian diamond exports competitive in the global market.
Simplified Procedures: Streamlines the process of importing and exporting diamonds under a transparent framework.
✅ Conditions:

Exporters must fulfill export obligations within a specified time frame to avail of the duty exemption.
Non-compliance with the export obligations may lead to penalties or revocation of benefits.
📊 Impact on the Diamond Industry:

Enhances India's position as a global hub for diamond cutting and polishing.
Contributes significantly to the country's foreign exchange earnings.
Encourages technological advancements and employment generation in the diamond sector.
📌 Additional Notes:

The DIA Scheme aligns with India's Make in India and export promotion initiatives.
India's diamond industry accounts for approximately 75% of the world's polished diamond exports, making this scheme critical for sustaining the sector's growth.
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✅ UPSC Prelims Multiple Choice Questions
1. What is the primary objective of the Diamond Imprest Authorization (DIA) Scheme?
a) To promote the import of gold and silver jewelry.
b) To allow duty-free import of rough diamonds for export-oriented processing.
c) To encourage diamond mining in India.
d) To levy higher taxes on diamond exports.

Answer: b) To allow duty-free import of rough diamonds for export-oriented processing.

2. Under the DIA Scheme, which of the following entities regulates the authorization process?
a) Reserve Bank of India (RBI)
b) Directorate General of Foreign Trade (DGFT)
c) Ministry of Mines
d) Securities and Exchange Board of India (SEBI)

Answer: b) Directorate General of Foreign Trade (DGFT)

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✅#Educational Update
We are launching Special crash course for Indian Economy for UPSC exam from 6th Feb 2025. for more details Contact @csgurukul

👆🏻above articles are related with Indian Economy and GS Paper 3 of UPSC exam

🌟 Project Nexus 🌟
Project Nexus is an initiative led by the Reserve Bank of India (RBI) to establish a robust and integrated digital payment ecosystem in the country. It aims to enhance the efficiency, security, and accessibility of digital payments while fostering innovation and inclusivity.

💡 Key Features of Project Nexus:

✅ Unified Payments System:

Promotes interoperability across various payment systems and platforms.
Encourages seamless integration between banks, fintech companies, and payment service providers.
✅ Enhanced Security:

Introduces advanced cybersecurity measures to ensure the safety of digital transactions.
Implements real-time fraud detection and risk management mechanisms.
✅ Inclusive Growth:

Focuses on expanding digital payment access to rural and underserved areas.
Encourages financial inclusion by integrating small businesses and individuals into the formal economy.
✅ Global Collaboration:

Facilitates cross-border payment solutions to enhance India's participation in the global financial system.
Encourages partnerships with international payment networks for faster and cost-effective transactions.
📊 Key Benefits of Project Nexus:

Efficiency: Reduces transaction processing time and costs.
User-Friendly: Offers a streamlined experience for users across multiple platforms.
Scalability: Prepares the payment ecosystem for future growth and innovation.
Inclusivity: Ensures that digital payment solutions cater to all segments of society.
📌 Additional Notes:

Project Nexus aligns with the Digital India mission, boosting India's transition toward a cashless economy.
It supports the government's vision of making India a global leader in financial technology and innovation.
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✅ UPSC Prelims Multiple Choice Questions
1. What is the primary objective of Project Nexus?
a) Promote cross-border military collaboration.
b) Establish an integrated digital payment ecosystem in India.
c) Develop advanced technologies for agriculture.
d) Build infrastructure for renewable energy.

Answer: b) Establish an integrated digital payment ecosystem in India.

2. How does Project Nexus contribute to financial inclusion?
a) By building physical bank branches in rural areas.
b) By integrating small businesses and underserved communities into digital payments.
c) By providing tax exemptions to digital payment companies.
d) By offering zero-interest loans to rural households.

Answer: b) By integrating small businesses and underserved communities into digital payments.

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🌟 Universal Banks 🌟
Universal Banks are financial institutions that offer a wide range of banking and financial services under one roof. They are designed to meet the diverse needs of customers, including retail banking, wholesale banking, investment services, and insurance. Universal banks operate as one-stop financial solutions providers.

💡 Key Features of Universal Banks:

✅ Comprehensive Services:

Offer services like savings accounts, loans, asset management, insurance, investment banking, and wealth management.
✅ Economies of Scale:

Their ability to operate across multiple financial domains reduces costs and improves efficiency.
✅ Wide Customer Base:

Cater to individuals, small businesses, corporates, and governments, ensuring a diversified client portfolio.
✅ Regulatory Oversight:

In India, universal banks are regulated by the Reserve Bank of India (RBI) and other financial regulators like SEBI and IRDAI, depending on their services.
📊 Examples of Universal Banks in India:

State Bank of India (SBI)
ICICI Bank
HDFC Bank
📌 Advantages of Universal Banks:

Convenience: Customers can access a variety of financial services in one place.
Cross-Selling Opportunities: Banks can offer tailored services to customers, increasing profitability.
Resilience: Diversification of services reduces risk exposure to specific market segments.
📌 Disadvantages of Universal Banks:

Complexity: Managing multiple services can lead to operational challenges.
Conflict of Interest: Overlapping functions may sometimes result in conflicting priorities.
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✅ UPSC Prelims Multiple Choice Questions
1. What distinguishes a Universal Bank from other banks?
a) It operates only in rural areas.
b) It offers a wide range of banking and financial services under one roof.
c) It deals exclusively with wholesale banking services.
d) It functions as a non-banking financial company (NBFC).

Answer: b) It offers a wide range of banking and financial services under one roof.

🌟 Monetary Policy of the Reserve Bank of India (RBI) 🌟
The Monetary Policy is a key economic policy tool used by the Reserve Bank of India (RBI) to regulate money supply, inflation, and overall economic stability in the country. It involves the management of interest rates and liquidity to achieve macroeconomic objectives.

💡 Objectives of Monetary Policy:
✅ Price Stability: To control inflation and ensure the purchasing power of the currency remains stable.
✅ Economic Growth: To maintain an environment conducive to sustainable growth.
✅ Financial Stability: To ensure stability in financial markets and prevent systemic risks.
✅ Employment Generation: To support job creation by promoting investments.

Types of Monetary Policy:
Accommodative (Expansionary) Policy:

Aim: To increase money supply and boost economic activity.
Tools: Reducing repo rates, lowering CRR and SLR, and increasing liquidity.
Tight (Contractionary) Policy:

Aim: To reduce money supply and control inflation.
Tools: Increasing repo rates, raising CRR and SLR, and reducing liquidity.
Key Tools of RBI's Monetary Policy:
Quantitative Tools (Impact Money Supply as a Whole):
✅ Repo Rate: The rate at which RBI lends to banks.
✅ Reverse Repo Rate: The rate at which banks deposit surplus funds with the RBI.
✅ Bank Rate: The rate at which RBI provides long-term credit to banks.
✅ Cash Reserve Ratio (CRR): The percentage of net demand and time liabilities (NDTL) that banks must hold as reserves with the RBI.
✅ Statutory Liquidity Ratio (SLR): The percentage of NDTL banks must maintain as liquid assets.

Qualitative Tools (Specific Impact):
✅ Open Market Operations (OMO): Buying and selling of government securities to regulate liquidity.
✅ Moral Suasion: Persuading banks to follow certain monetary actions.
✅ Margin Requirements: Adjusting loan limits for different sectors.

📊 Impact of Monetary Policy:

Inflation Control: Helps maintain price stability.
Investment Growth: Encourages borrowing and investments during low-interest regimes.
Employment Generation: Boosts economic activities to create jobs.
External Stability: Influences exchange rates and capital flows.
📌 Additional Notes:

The Monetary Policy Committee (MPC), established under the RBI Act, 1934, is responsible for setting the policy interest rates.
The MPC has six members: three from the RBI and three nominated by the government.
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✅ UPSC Prelims Multiple Choice Questions
1. Which of the following is a quantitative tool of monetary policy?
a) Moral Suasion
b) Open Market Operations
c) Margin Requirements
d) Inflation Targeting

Answer: b) Open Market Operations

2. The Monetary Policy Committee (MPC) is responsible for which of the following?
a) Regulating stock markets in India.
b) Setting policy interest rates like the repo rate.
c) Managing the fiscal policy of India.
d) Controlling foreign trade regulations.

Answer: b) Setting policy interest rates like the repo rate.

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🌟 Variable Repo Rate (VRR) 🌟
The Variable Repo Rate (VRR) is a monetary tool used by the Reserve Bank of India (RBI) to manage liquidity in the financial system. Unlike the fixed repo rate, which remains constant during the tenure of a repo agreement, the VRR is dynamic and changes based on prevailing market conditions.

💡 Key Features of Variable Repo Rate (VRR):

✅ Dynamic Rate:

The interest rate under VRR varies during the tenure, aligning with changes in the monetary policy or liquidity conditions.
✅ Liquidity Management:

Used to inject or absorb liquidity in the banking system.
Ensures that short-term interest rates remain aligned with the policy stance of the RBI.
✅ Purpose:

Helps manage money supply in the economy effectively.
Prevents inflationary or deflationary pressures by influencing credit availability.
✅ Operations:

Conducted through auctions where banks bid for repo agreements.
Ensures transparency and reflects the market demand for funds.
📊 Impact:

Promotes efficient liquidity management.
Encourages banks to manage funds more prudently based on market-driven interest rates.
Supports the implementation of the RBI’s monetary policy objectives.
📌 Additional Notes:

The VRR mechanism supplements other tools like Open Market Operations (OMO) and Cash Reserve Ratio (CRR).
It is particularly significant during periods of economic volatility when fixed rates may not reflect real market dynamics.
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✅ UPSC Prelims Multiple Choice Questions
1. What distinguishes the Variable Repo Rate (VRR) from the fixed repo rate?
a) VRR is market-driven and changes dynamically.
b) VRR is applicable only for long-term loans.
c) VRR is a fixed rate set for all repo transactions.
d) VRR is used solely for inflation control.

Answer: a) VRR is market-driven and changes dynamically.

2. Which of the following is a primary function of the Variable Repo Rate (VRR)?
a) Fixing long-term interest rates for housing loans.
b) Managing liquidity in the banking system.
c) Determining the fiscal deficit of the government.
d) Regulating foreign exchange rates.

Answer: b) Managing liquidity in the banking system.

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🌟 Startup India Initiative 🌟

Startup India, launched on 16th January 2016, is a flagship initiative by the Government of India aimed at fostering entrepreneurship, innovation, and job creation. It provides a robust ecosystem for startups to thrive and contributes significantly to the Indian economy.

💡 Key Features of Startup India:

✅ Simplified Process:

A single-window clearance system via the Startup India portal.

Self-certification for compliance with environmental and labor laws.


✅ Tax Benefits:

Income Tax Exemption: Eligible startups are exempted from income tax for three consecutive years.

Exemption from angel tax on investments.


✅ Funding Support:

Fund of Funds for Startups (FFS): ₹10,000 crore corpus to support startups via SEBI-registered venture capital funds.

Credit Guarantee Scheme: Facilitates loans for startups with minimal collateral.


✅ Innovation and Incubation:

Establishment of Atal Innovation Mission (AIM) to promote innovation through incubation centers.

Support for research and development in emerging technologies.


✅ Market Access:

Facilitates startups' participation in government procurement without prior experience or turnover requirements.

Collaboration with various ministries for problem-solving through innovative solutions.


📊 Impact of Startup India:

Over 1 lakh startups recognized under the initiative.

Creation of more than 9 lakh jobs.

Significant contributions to technology, healthcare, education, agriculture, and other sectors.


📌 Additional Notes:

Startups must be registered entities (private limited companies, LLPs, or registered partnerships) to avail benefits.

They must not have a turnover exceeding ₹100 crore in any financial year and should work on innovative products/services.



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✅ UPSC Prelims Multiple Choice Questions

1. What is the corpus of the Fund of Funds for Startups (FFS) under the Startup India initiative?
a) ₹5,000 crore
b) ₹10,000 crore
c) ₹20,000 crore
d) ₹15,000 crore

Answer: b) ₹10,000 crore

2. Under Startup India, for how many consecutive years can a startup avail of income tax exemptions?
a) 2 years
b) 3 years
c) 5 years
d) 7 years

Answer: b) 3 years


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📊 Expenditure Finance Committee (EFC) 📊
The Expenditure Finance Committee (EFC) is a critical body that evaluates proposals involving significant public expenditure, ensuring the efficient allocation of resources and alignment with government priorities.
💡 Key Highlights of EFC:
✅ Role: Evaluates major projects and schemes to ensure alignment with government goals.
✅ Function: Ensures fiscal discipline and transparency in public fund allocation.
✅ Impact: Plays a pivotal role in approving modifications or extensions of schemes such as the Interest Equalisation Scheme (IES), ensuring effective budgetary utilization.
📌 Additional Notes:
The EFC reviews the financial and strategic viability of projects before implementation.
It ensures public funds are used effectively to achieve socio-economic objectives like supporting MSMEs or boosting exports.
Ministries proposing extensions or modifications to large schemes must seek EFC approval for budgetary allocations.
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✅ UPSC Prelims Multiple Choice Questions
1. Which of the following best describes the role of the Expenditure Finance Committee (EFC)?
a) Monitoring the implementation of government schemes.
b) Evaluating proposals involving substantial public expenditure.
c) Formulating policies for economic growth.
d) Allocating funds to state governments for development projects.
Answer: b) Evaluating proposals involving substantial public expenditure.
2. The Expenditure Finance Committee (EFC) is responsible for:
a) Finalizing interest rates for export credit schemes.
b) Assessing financial and strategic viability of projects.
c) Preparing the Union Budget.
d) Allocating subsidies for agricultural exports.
Answer: b) Assessing financial and strategic viability of projects.
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✅Interest Equalisation Scheme (IES)
The Interest Equalisation Scheme (IES), launched in 2015, is a game-changing initiative by the Government of India to support exporters with subsidized interest rates on pre-shipment and post-shipment export credit. The scheme offers an interest subsidy of 3% to 5%, with a strong focus on empowering Micro, Small, and Medium Enterprises (MSMEs) engaged in exports.
💡 Key Highlights of the Scheme:
✅ Objective: Reduce the financial burden on exporters and boost global competitiveness.
✅ Beneficiaries: MSMEs and other eligible exporters.
✅ Subsidy Rates: 3% to 5% on export credit interest rates.
✅ Impact: Enables exporters to access affordable credit, improve liquidity, and offer competitive pricing in international markets.
📊 Example:
If an MSME exporter secures export credit at a 9% interest rate, the 3% subsidy under IES reduces the effective rate to 6%. This directly lowers costs, improves financial stability, and enhances market competitiveness.
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✅ UPSC Prelims Multiple Choice Questions
1. The Interest Equalisation Scheme (IES) was introduced to:
a) Support MSMEs in accessing affordable export credit.
b) Promote foreign direct investment in India.
c) Provide interest-free loans to exporters.
d) Subsidize production costs for exporters.
Answer: a) Support MSMEs in accessing affordable export credit.
2. The Interest Equalisation Scheme (IES) provides which of the following benefits?
a) A reduction in export duties.
b) Interest subsidies for pre-shipment and post-shipment credit.
c) Grants for exporters to set up new factories.
d) Tax exemptions for export income.
Answer: b) Interest subsidies for pre-shipment and post-shipment credit.
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✅Indian Economy - Institute of Chartered Accountants of India.
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Channel name was changed to «Indian Economy -Civil Service Gurukul»

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Centre plans common interest groups, social infra, micro-credit for urban poor workers across 25 cities | India News - The Indian Express
https://indianexpress.com/article/india/centre-plans-common-interest-groups-social-infra-micro-credit-for-urban-poor-workers-across-25-cities-9605710/

👆 relevant for GS paper 3

Source: Indian Express

India has become a member of the Minerals Security Finance Network (MSFN) which involves 14 countries and European Union. MSFN is a US led initiative to strengthen cooperation among members to secure supply chain for critical minerals (cobalt, nickel, lithium and rare earth minerals) . This is required for our clean energy transition goals and electronics and semiconductor manufacturing because till now the supply chain of critical minerals are mostly located in China.
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National Mission on Edible Oils
Approved by Union Cabinet Yesterday. The Mission will be implemented over a seven-year period, from 2024-25 to 2030-31, with a financial outlay of Rs 10,103 crore. The mission focuses on

1. Enhancing the production of key primary oilseed crops such as Rapeseed-Mustard, Groundnut, Soybean, Sunflower, and Sesamum

2. Increasing collection and extraction efficiency from secondary sources like Cottonseed, Rice Bran, and Tree Borne Oils

3. Targets to increase domestic edible oil production to 25.45 million tonnes by 2030-31 meeting around 72% of our projected domestic requirement. This will be achieved by promoting adoption of high-yielding high oil content seed varieties, extending cultivation into rice fallow areas, and promoting intercropping.

4. Over 600 Value Chain Clusters will be developed across 347 unique districts which will be managed by value chain partners such as FPOs, cooperatives, and public or private entities

5. The Mission will harness ongoing development of high-quality seeds by using cutting-edge global technologies such as genome editing.

6. The Mission aims to significantly enhance domestic oilseed production, advancing the goal of Atmanirbharta (self-reliance) in edible oils, thereby reducing import dependency and conserving valuable foreign exchange while boosting farmers' incomes.

7. It will also accrue significant environmental benefits in the form of low water usage and improved soil health and making productive use of crop fallow areas.

Note: Presently the country is heavily reliant on imports which account for 57% of its domestic demand for edible oils.
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UPSC withdraws the advertisement for lateral recruitment of 45 posts "as requested by the requisitioning authority".

#LateralEntry | #UPSC
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#UPSC announces the #CivilServicesExamination2023 final #result. #AdityaShrivastava tops the Examination.
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🔯What is the World Economic Outlook about?

The World Economic Outlook (WEO) is an International Monetary Fund (IMF) report providing output, inflation, employment, fiscal balances, and debt statistics for member countries.

The report forecasts the global growth, summarizes the state of global economy and highlights the most important developments.
The IMF publishes the WEO report twice a year (April and October) based on data obtained from its consultations with member countries' governments.

The IMF also publishes two additional and less comprehensive WEO updates a year, each three months after the main WEO report.

✅What is the model used by IMF?

Macroeconomic model – The IMF used a macroeconomic model based on Platzer and Peruffo (2022) to analyse the impact of different forces on the world economy.

This includes foreign developments affecting domestic interest rates through net international capital flows.

8 economies – The model represents 8 major global economies, including the United States, Japan, Germany, the United Kingdom, France, China, India, and Brazil.

The model is calibrated to reflect demographic developments, productivity trends, retirement age, and other factors.

Global GDP – These are the five largest advanced economies and the three largest emerging market and developing economies, which cover some 70% of global GDP.

✅What are the findings of the latest report?

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The baseline forecast is for growth to fall from 3.4% in 2022 to 2.8% in 2023, before settling at 3.0% in 2024.

Advanced economies are expected to see an especially pronounced growth slowdown, from 2.7% in 2022 to 1.3% in 2023.

In a plausible alternative scenario with further financial sector stress, global growth declines to about 2.5% in 2023 with advanced economy growth falling below 1%.

Global headline inflation in the baseline is set to fall from 8.7% in 2022 to 7.0% in 2023 on the back of lower commodity prices but underlying (core) inflation is likely to decline more slowly.

Inflation’s return to target is unlikely before 2025 in most cases.

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Government’s Borrowing plan for first half of FY 2024-25

➡️ Out of Gross Market borrowing of ₹14.13 lakh crore projected for FY 2024-25 in the Union budget, ₹7.50 lakh crore (53.08%) is planned to be borrowed in the first half through dated securities, including ₹12,000 crore through issuance of Sovereign Green Bonds (SGrBs)

➡️ The gross market borrowing of ₹7.50 lakh crore shall be completed through 26 weekly auctions. The market borrowing will be spread over 3, 5, 7, 10, 15, 30, 40 and 50 year securities


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👆For Indian Economy @economyupsc
Topic - Current Account Deficit

✅ current account deficit is the difference between exports and imports of goods and services. It is a key indicator of the country’s external sector.

🏆Recent Educational Updates🏆
Civil Service Gurukul is happy to announce guidance program for Indian Economy from 09 April 2024.
.
🏆🏵✅
✅1. Value added notes will be provided on every topic of the Indian Economy.
✅2. We will provide test series of Indian Economy .
.✅ 3.Total class will be 20 to 30 .
✅4. We will cover current affairs portion also.
✅5. Daily MCQ will be provided till exam.
✅6. All Indian economy query will be resolved through mail or phone within 2 days from asking query.
Only registered students will be eligible for guidance .

✅⬇️For registration ...contact at
@csgurukul

WhatsApp at

9911020626

🔵Financing Agrochemical Reduction and Management Programme (FARM)

✅Seven countries – Ecuador, India, Kenya, Laos, Philippines, Uruguay, and Vietnam – have initiated a program called the Financing Agrochemical Reduction and Management Programme (FARM) to address pollution from pesticides and plastics in agriculture.

✅This initiative aims to combat the release of toxic persistent organic pollutants (POPs) into the environment caused by the use of harmful chemicals in farming

Indian Economy by CA Dhananjay Ojha Sir
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Economic  Survey 2023-24


#cadhananjay #survey2023 #IndianEconomy #economicsurvey
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