Correct Answer :   6.22 lakh crore

The Ministry of Defence (MoD) has been allocated a record Rs 6.22 lakh crore in the regular Union Budget for the financial year 2024-25, the highest allocation among all ministries.

The total allocation is 18.43% higher than the previous financial year, with 27.66% earmarked for capital expenditure.

Correct Answer :   2030

According to a NITI Aayog report, India has set an ambitious target to achieve $500 billion in electronics manufacturing by 2030.

This target comprises $350 billion from finished goods and $150 billion from components.

The current electronics production in India stands at $101 billion, indicating significant growth potential in the sector.

Achieving this goal is expected to boost employment to around 6 million jobs and substantially increase exports.

Correct Answer :   7%

The Asian Development Bank (ADB) has maintained India's GDP growth forecast at 7% for the financial year FY25.

This forecast is based on expectations of a rebound in agriculture due to above-normal monsoon projections and continued robust growth in services and industry sectors.

Correct Answer :   7%

NITI Aayog member Arvind Virmani has projected that India's economy will grow at a rate of 7% in the fiscal year 2024-25.

This optimistic forecast indicates expectations for robust economic recovery and growth momentum, driven by recovering private consumption and potentially increased foreign direct investment amidst favourable global economic conditions.

The projection underscores efforts to sustain and accelerate economic growth in India, contributing to broader fiscal stability and developmental goals.

Correct Answer :   64.2

The Financial Inclusion Index (FI-Index) measures the extent of financial inclusion in India, with a scale from 0 to 100.

In March 2024, the FI-Index rose to 64.2 from 60.1 in March 2023, reflecting overall growth across all sub-indices, especially in usage.

This indicates significant progress in financial inclusion, showing that a larger portion of the population is engaging more frequently with financial services.

The index's improvement highlights advancements in access, usage, and quality of financial services.

Correct Answer :   7.5%

The National Council of Applied Economic Research (NCAER) forecasts India's GDP growth rate for the fiscal year 2024-25 (FY25) to potentially reach around 7.5%.

This outlook suggests optimism about the resilience and growth momentum of the Indian economy, supported by various high-frequency indicators showing robust performance across sectors.

Correct Answer :   6.8%

S&P Global Ratings has maintained India's GDP growth estimate for FY25 at 6.8%.

This projection takes into account factors such as high interest rates and reduced fiscal stimulus impacting demand in non-agricultural sectors, indicating a moderated growth outlook compared to previous fiscal years.

Correct Answer :   7.2%

Fitch Ratings has revised India’s GDP growth forecast for the financial year 2024-25 upward to 7.2% from the earlier estimate of 7%.

This adjustment is based on anticipated improvements in consumer spending and ongoing investment, albeit at a slower pace than in recent quarters.

The revision aligns with the Reserve Bank of India's forecast and contrasts with projections by other institutions like the IMF and ADB, which have set their estimates at 7% for the same period.

Fitch's outlook factors in global economic conditions, including recovery in Europe and China's export sector, influence India's economic growth prospects.

Correct Answer :   4.75%

India’s consumer price index (CPI) inflation dropped to a 12-month low of 4.75% in May 2024, down from 4.83% in April, marking a continued trend within the Reserve Bank of India’s target range of 2-6% since September 2023.

The inflation rates for rural and urban areas stood at 5.28% and 4.15%, respectively. Despite this decrease, inflation in the food basket remained elevated at 8.69% in May, slightly lower than 8.70% in April. The Reserve Bank of India aims to maintain CPI inflation at 4%, with a margin of 2% on either side, and recent projections suggest a stable outlook for the coming quarters.

Overview of CPI Inflation :

In May 2024, India’s consumer price index (CPI) inflation reached a 12-month low of 4.75%, indicating a marginal decline from the previous month’s 4.83%. This aligns with the Reserve Bank of India’s target range and reflects varied inflation rates across rural (5.28%) and urban (4.15%) areas.

Food Inflation Trends :

Despite the overall decrease in CPI inflation, food inflation remained high at 8.69% in May, marginally down from 8.70% in April. This category continues to influence India’s inflation dynamics significantly.

RBI’s Inflation Targets and Projections :

The Reserve Bank of India (RBI) has set a target of maintaining CPI inflation at 4%, with a range of 2% on either side. Projections for 2024-25 indicate a stable inflation outlook, with varying rates across quarters: Q1 at 4.9%, Q2 at 3.8%, Q3 at 4.6%, and Q4 at 4.5%.

Correct Answer :   4.9%

India’s Index of Industrial Production (IIP) recorded a growth rate of 4.9% in March 2024, showing a slight slowdown primarily attributed to a faltering mining sector. This decline follows a robust 5.6% growth in February 2024 and contrasts sharply with the 1.9% growth seen in March 2023.

Sectoral Performance Overview :

The mining sector experienced a significant deceleration with growth plummeting to 1.2% in March 2024 from 6.8% in the same month a year ago. Meanwhile, the manufacturing sector showed resilience, accelerating to 5.2% growth compared to 1.5% in March 2023. Electricity generation surged by 8.6%, marking a recovery from a 1.6% contraction in March of the previous year.

Key Contributors to Manufacturing Growth :

Key drivers within the manufacturing sector included the manufacture of basic metals (7.7% growth), pharmaceuticals (16.7% growth), and other transport equipment (25.4% growth). These segments significantly contributed to the overall industrial output expansion in March 2024.

End Use Classification :

Segmenting by the end use of goods, primary goods output rose by 2.5%, capital goods by 6.1%, intermediate goods by 5.1%, and infrastructure and construction goods by 6.9%. However, consumer non-durable goods output saw a decline of 4.9%, contrasting with a 9.5% rise in consumer durables output.

Economic Insights and Outlook :

Economists point out that the slowdown in industrial production growth reflects the waning effect of previous favorable conditions, notably the leap-year effect. Despite challenges in the mining sector, the uptick in manufacturing and electricity generation suggests some resilience in India’s industrial landscape, albeit with varying sectoral performances.