{"id":42147,"date":"2024-08-31T09:11:51","date_gmt":"2024-08-31T03:41:51","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=42147"},"modified":"2025-10-11T12:11:35","modified_gmt":"2025-10-11T06:41:35","slug":"rbis-report-on-the-economys-performance-so-far-in-2024-25","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/rbis-report-on-the-economys-performance-so-far-in-2024-25\/","title":{"rendered":"RBI\u2019s Report on the Economy\u2019s Performance so Far in 2024-25"},"content":{"rendered":"<h2><strong>What\u2019s in today\u2019s article?<\/strong><\/h2>\n<ul>\n<li>Why in News?<\/li>\n<li>Highlights of the RBI\u2019s Report<\/li>\n<li>Bright Spots in India\u2019s Economy\u2019s Performance<\/li>\n<li>Indian Economy\u2019s Challenges and Way Ahead<\/li>\n<\/ul>\n<h2><strong>Why in News?<\/strong><\/h2>\n<p>The first official gauge of the economy\u2019s performance so far in 2024-25 has been recently released by the Reserve Bank of India (RBI).<\/p>\n<h2><strong>Highlights of the RBI\u2019s Report:<\/strong><\/h2>\n<ul>\n<li><strong>Gross Domestic Product (GDP) growth:<\/strong>\n<ul>\n<li>Earlier this month, the RBI reduced its Q1 GDP forecast from 7.2% to 7.1%.<\/li>\n<li>The RBI anticipates 7.2% GDP growth through 2024\u20132025 after last year&#8217;s 8.2% surge.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Growth in the Gross Value Added (GVA):<\/strong>\n<ul>\n<li>For the first time in a year, growth in the real GVA in the economy outperformed GDP growth, with a 6.8% uptick in the first quarter (Q1) of 2024-25.<\/li>\n<li>This GVA growth in Q1 has been driven by significant growth in the Secondary Sector (8.4%), comprising construction, utility services (such as electricity, gas, water supply) and manufacturing sectors.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Employment generation:<\/strong>\n<ul>\n<li>India provisionally created 46.7 million jobs in the financial year ended March 2024, taking the country&#8217;s total employment to 643.3 million.<\/li>\n<li>The country&#8217;s employment growth rate stood at <strong>6%<\/strong> in that fiscal year, versus 3.2% in the previous fiscal year.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Bank credit growth:<\/strong>\n<ul>\n<li><strong>Credit to agriculture and allied activities<\/strong> remained robust, registering a growth of 18.1% at Rs 21.55 lakh crore in July 2024, compared with 16.7% a year ago.<\/li>\n<li><strong>Credit growth to industry<\/strong> strengthened significantly at 10.2% to Rs 37.05 lakh crore in July 2024 compared with 4.6% in July 2023.<\/li>\n<li><strong>Credit growth to services sector<\/strong> moderated to 15.4% in July 2024 from 19.7% a year ago, primarily driven down by relatively lower credit growth in non-banking financial companies (NBFCs) and trade segments.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2><strong>Bright Spots in India\u2019s Economy\u2019s Performance:<\/strong><\/h2>\n<ul>\n<li><strong>Normal monsoon:<\/strong> It will boost farm sector output and ease inflation, which could lift the weak rural demand and private consumption.<\/li>\n<li><strong>Private investment:<\/strong> Increased demand would lessen the need for government expenditure to support growth by encouraging private firms to invest in new capacities.<\/li>\n<\/ul>\n<h2><strong>Indian Economy\u2019s Challenges and Way Ahead:<\/strong><\/h2>\n<ul>\n<li><strong>The prolonged general election<\/strong> has severely hindered public capital expenditure, and the government will have to work even harder to reach its spending targets.<\/li>\n<li><strong>The policymakers need to urgently pursue meaningful reforms<\/strong> across all aspects of the economy, and improve the <strong>efficiency of its institutions and the judiciary<\/strong>.<\/li>\n<\/ul>\n<p>This is critical to lift its growth potential and fulfill hopes of creating gainful employment for its young, fast enough for India\u2019s demographics to yield a dividend.<\/p>\n<hr \/>\n<h3><strong>Q.1. What is the difference between GDP and GVA?<\/strong><\/h3>\n<p>GDP is the total value of all goods and services produced in a country, while GVA is the value added to those goods and services after accounting for subsidies and taxes. GVA allows for detailed analysis of specific sectors, while GDP provides a broader perspective of the economy as a whole.<\/p>\n<h3><strong>Q.2. What are the non-banking financial companies (NBFCs)?<\/strong><\/h3>\n<p>A NBFC is a financial institution that offers financial services but does not have a full banking license. NBFCs are an important part of India&#8217;s financial system and play a key role in disbursing credit.<\/p>\n<p><strong>Source: <\/strong><a href=\"https:\/\/www.thehindu.com\/business\/Economy\/gdp-growth-slows-to-15-month-low-of-67-in-apr-jun\/article68585994.ece\" target=\"_blank\" rel=\"nofollow noopener\">At 6.7%, growth slid to five[1]quarter low in Q1<\/a> <a href=\"https:\/\/indianexpress.com\/article\/business\/economy\/bank-credit-growth-rises-further-to-15-1-as-of-july-deposits-lag-behind-rbi-9542304\/\" target=\"_blank\" rel=\"nofollow noopener\">| IE<\/a> |<a href=\"https:\/\/economictimes.indiatimes.com\/news\/economy\/indicators\/india-employment-provisionally-grew-at-6-in-fy24-vs-3-2-in-fy23-rbi-data-shows\/printarticle\/111578801.cms\" target=\"_blank\" rel=\"nofollow noopener\">ET<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In the quarter ending in June 2024, India&#8217;s real GDP increased by 6.7%, the slowest in the previous five quarters, and far less than the RBI&#8217;s forecast of 7.1% growth<\/p>\n","protected":false},"author":5,"featured_media":42148,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[],"class_list":{"0":"post-42147","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-mains-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/42147","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=42147"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/42147\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/42148"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=42147"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=42147"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=42147"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}