Indian Economy - General Knowledge Questions

Correct Answer :   7.2%

India's Gross Domestic Product (GDP) clocked a higher-than-expected growth rate of 6.1 per cent in January-March 2023, in turn pushing up the growth estimate for full year 2022-23 to 7.2 per cent, according to data released Wednesday by the National Statistical Office (NSO).

* This is higher than NSO’s advance estimates of 7 per cent for 2022-23.

* A pickup in services sector growth led by construction, and trade, hotels, transport sectors along with higher investment supported growth even as private final consumption expenditure registered a muted growth.

* India’s GDP in FY23, however, will be lower than the growth rate of 9.1 per cent in 2021-22.

* Sequentially, in quarterly terms in 2022-23, the economy grew 13.1 per cent in April-June (earlier 13.2 per cent), 6.2 per cent in July-September (earlier 6.3 per cent), 4.5 per cent in October-December (earlier 4.4 per cent).

* Agricultural growth was estimated at 5.5 per cent in Q4 as against 4.1 per cent in the year-ago period and 4.7 per cent in the previous quarter. Manufacturing growth rebounded to a year-on-year growth of 4.5 per cent in Q4 FY2023 after having contracted in each of the previous two quarters.

* For the full year though, revisions for the previous quarter ensured manufacturing growth being estimated now at 1.3 per cent for FY23 as against 0.6 per cent earlier.

* Experts said the uptick in manufacturing reflects growth in volumes as well as an improvement in margins during the fourth quarter, partly on account of a sustained moderation in input costs.

* Commenting on the GDP data, Chief Economic Adviser V Anantha Nageswaran said the revised numbers to be released next year for FY23 could push the GDP growth further beyond 7.2 per cent. “I think I can stick my neck out and say that when the revised numbers for FY23 are released next year, there might be an upward revision to the 7.2 percent GDP growth figure.

Source : Indian Express

Correct Answer :   6.7%

According to a UN report titled, 'World Economic Situation and Prospects as of mid-2023', India’s economy is expected to grow by 5.8% in 2023 and 6.7% in 2024 (CY), supported by resilient domestic demand.

* The report has also highlighted that the higher interest rates and weaker external demand will continue to weigh on investment and exports this year for the country.

* Inflation in India is expected to decelerate to 5.5 per cent in 2023 as global commodity prices moderate and slower currency depreciation reduces imported inflation.

* The estimates for India’s economic growth in the mid-year assessment remained unchanged from the projections made in the World Economic Situation and Prospects 2023 report launched in January this year.

* The flagship report issued in January had said that India’s GDP is projected to moderate to 5.8 per cent in 2023 as higher interest rates and global economic slowdown weigh on investment and exports.

* India’s economic growth is expected to remain “strong” even as prospects for other South Asian nations "are more challenging.” India is projected to grow at 6.7 per cent in 2024, the fastest-growing major economy in the world

Source : Outlook India

Correct Answer :   4.7%

India’s retail inflation in the month of April 2023 eased to an 18-month low of 4.70%, data released by the National Statistical Office (NSO) on Friday (12th May 2023).

* At 4.70, the consumer price index (CPI) in April 2023 remained below the upper threshold of the Reserve Bank of India’s medium-term 4+/- 2% target.

* The country’s headline inflation remained within the tolerance range of the RBI for the second consecutive month. In March 2023, India’s headline inflation stood at 5.66%.

* The consumer food price index (CFPI) eased to 3.84% in April, as against 4.79% in March.

* Meanwhile, the rural inflation in April stood at 4.68%, and the urban inflation came at 4.85 per cent.

* In a bid to keep inflation under the tolerance band, the RBI since 2022 May has hiked the key lending rate –repo rate — by 250 basis points. The RBI’s repo rate currently stands at 6.50 per cent.

* India’s industrial output in March grew 1.1%, the NSO stated in separately released data. Factory output measured in terms of the Index of Industrial Production (IIP) grew 2.2% in March 2023.

* The manufacturing sector’s output increased by 0.5% in March while the mining output increased 6.8% in the same month, the data showed.

* India’s power output in March declined by 1.6 in March. In fiscal 2023, the IIP grew 5.1% in 2022-23, as compared to 11.4% in FY2021-22..

Source : Indian Express

Correct Answer :   1.1%

India's industrial output grew by 1.1% in March 2023 - the slowest pace in 5 months - data released by the Ministry of Statistics and Programme Implementation on 12 May 2023 showed.

* Industrial growth, as per the Index of Industrial Production (IIP), for February 2023 has been revised up to 5.8% from 5.6%.

* At 1.1%, the March 2023 IIP growth figure is well below the consensus estimate of 3.2%.

* For 2022-23 as a whole, industrial production clocked a growth of 5.1% as against 11.4% in 2021-22.

* The sharp fall in industrial growth in March was due to the manufacturing and electricity segments stagnating.

* In March, output of the manufacturing sector - which accounts for more than three-fourth of the IIP - rose by a mere 0.5 percent on a year-on-year basis as against a 5.6% increase in February. To make matters worse, electricity production was down 1.6 percent compared to an 8.2 percent rise in February.

* However, on a sequential basis, manufacturing output was up 6.4% from February, while electricity production was 8.0% higher.

* The third sector, mining, saw its output rise by 6.8 percent year-on-year and 19.3% on a month-on-month basis.

* Going by the use-based classification of goods, five of the six categories posted weaker numbers in March.

* Growth in primary goods' output more than halved to 3.3% from 6.9% in February, while capital goods saw their production rise by a respectable 8.1% in March - albeit lower than the 10.5% growth they had posted in February.

* Production of infrastructure goods was up 5.4% compared to 8.4% in February.

* But the worst showing came from the cosumer goods, with output of both durables and non-durables contracting in March by 8.4% and 3.1%, respectively.

* In February, production of consumer durables had fallen by 4.1%, while that of non-durables had surged 12.1%.

* Only intermediate goods showed any improvement in performance, with their output increasing by 1%, marginally higher than 0.7% in February 2023.

* The poor industrial performance in March is much worse than what was expected, with the most pessimistic estimate in Moneycontrol's survey being a 2.0% growth. However, the actual number coming just over half that figure will be of concern to policymakers and could be a sign of things to come, with GDP data for January-March set to be released on May 31..

Source : Money Control

Correct Answer :   6.2

According to the Morgan Stanley report, India's GDP in FY24 would grow at 6.2 percent.

Inflation in India is likely to be below 5% in the second quarter of the calendar year 2024.

The headline consumer price index (CPI) for March was in line with expectations.

Morgan noted that the key to sustained domestic demand is a pickup in capex, which will help create more jobs, thus leading to a virtuous cycle of more jobs-to-higher income-higher savings-higher investment..

Source : Odisha TV

Correct Answer :   1.34%

According to the government data, India's annual Wholesale Price Index (WPI)-based inflation has declined to a 29-month low of 1.34% in March 2023, as input prices continued to moderate.

* This is the 10th straight month of decline in WPI-based inflation.

* The WPI inflation data was 3.85% in February, 4.73% in January 2023, and 14.63% in March 2022.

* While the food index inflation eased to 2.32% in March 2023 from 2.76% in February 2023..

Source : Mint

Correct Answer :   6.0%

According to the United Nations, India's economic growth is projected to decelerate to 6% in 2023 from 6.6% in 2022.

* The UNCTAD in its latest Trade and Development Report Update released, expects global growth in 2023 to drop to 2.1%, compared to the 2.2% projected in September 2022.

* UNCTAD expects the South-Asian region to expand at a still fast pace of 5.1 percent in 2023.

* Recently, IMF lowered India's economic growth projection for the current fiscal to 5.9%..

Source : India Times

Correct Answer :   6.4%

The Asian Development Bank (ADB) projects growth in India’s gross domestic product (GDP) to moderate to 6.4% in fiscal year (FY) 2023 ending on 31 March 2024 and rise to 6.7% in FY2024, driven by private consumption and private investment on the back of government policies to improve transport infrastructure, logistics, and the business ecosystem.

* The projection is part of the latest edition of ADB’s flagship economic publication, Asian Development Outlook (ADO) April 2023, released 4th April 2023.

* The growth moderation for India in FY2023 is premised on an ongoing global economic slowdown, tight monetary conditions, and elevated oil prices. However, FY2024 is expected to see faster growth in investment, thanks to supportive government policies and sound macroeconomic fundamentals, lower nonperforming loans in banks, and significant corporate deleveraging that will enhance bank lending, according to ADO April 2023.

* Despite the global slowdown, India’s economic growth rate is stronger than in many peer economies and reflects relatively robust domestic consumption and lesser dependence on global demand, said ADB Country Director for India Takeo Konishi.

* The Government of India’s strong infrastructure push under the Prime Minister’s Gati Shakti (National Master Plan for Multimodal Connectivity) initiative, logistics development, and industrial corridor development will contribute significantly to raising industrial competitiveness and boosting future growth.

* Inflation will likely moderate to 5% in FY2023, assuming moderation in oil and food prices, and slow further to 4.5% in FY2024 as inflationary pressures subside.

* In tandem, monetary policy in FY2023 is expected to be tighter as core inflation persists, while becoming more accommodative in FY2024. The current account deficit is projected to decline to 2.2% of GDP in FY2023 and 1.9% in FY2024. Growth in goods exports is forecast to moderate in FY2023 before improving in 2024...

Source : ADB

Correct Answer :   6.3%

World Bank has predicted India's economy to slow in the current fiscal (2023-24) to 6.3% on the back of shrinkage in consumption due to slower income growth.

* The report estimates India's inflation to moderate from 6.6% to 5.5% in the current fiscal.

* The Current Account Deficit (CAD) is expected to be 5.2% in FY24.

* The Economic Survey had projected a growth of 6.5% for the current fiscal while RBI's latest projection pegs growth for FY24 at 6.4%..

Source : Money Control

Correct Answer :   ₹1.60 lakh crore

India’s Goods and Services Tax (GST) revenue collection for the month of March 2023 stood at 1.6 lakh crore rupees, which is 13% higher than the GST revenues in the same month of last year.

* As per the statement of Finance Ministry 1st April 2023, it is for the fourth time, in the current financial year that the gross GST collection has crossed 1.5 lakh crore rupees, since the implementation of GST.

* Out of the total collection, CGST is 29,546 crore rupees, SGST is 37,314 crore rupees and IGST is 82,907 crore rupees, including ₹42,503 crores collected on import of goods. While cess contributed 10,355 crore rupees, including 960 crore rupees collected on import of goods.

* Meanwhile, the total gross collection for the year 2022-23 stands at 18.10 lakh crore rupees, while the average gross monthly collection for the full year is 1.51 lakh crore rupees.

* The Ministry said the gross revenues in 2022-23 were 22% higher than that 2022..

Source : AIR