GDP

A report released by the FICCI on Thursday based on data from international agencies states that the impact of India’s illicit financial flows works out to around 5 per cent of the country’s GDP.

"The external debt to GDP ratio declined to 18.6 per cent at end-June 2023 from 18.8 per cent at end-March 2023," RBI said.

According to the Reserve Bank of India (RBI), household net financial savings (HHNFS) collapsed to just 5.1  per cent  of GDP in FY23, marking the lowest level in 47 years since FY77, the report said.

"India’s real GDP growth was 7.8 per cent year on year in Q1 FY24 (first quarter of 2023-24). This is as per the income or production approach. As per the expenditure approach, it would have been lower. So, a balancing figure – statistical discrepancy – is added to the expenditure approach estimate," the Finance Ministry said in a series of posts on X (formerly Twitter).

The domestic market witnessed a significant rally at the end of the week, driven by higher-than-expected domestic manufacturing PMI and positive GDP growth data, reflecting a robust economic outlook, he said. Favourable global cues also played a role in this upturn. Notably, there was heavy buying in metal stocks in anticipation of further stimulus measures from the Chinese government.

Falling income growth in the urban sector, shrinking corporate profitability, fading momentum in (front-loaded) government capex, demand-curbing monetary policies and diminishing global growth prospects may weigh on output, the report said.

"India’s quarterly GDP growth towers over that of many other economies.The government and the RBI are comfortable in holding on to their 2023-24 GDP growth forecast of 6.5 per cent," chief economic adviser V Anantha Nageswaran said, while reacting to the GDP numbers.

However compared to 6.1 per cent growth recorded in January-March period of 2022-23, the GDP growth for the first quarter of 2023-24 was higher at 7.8 per cent.

Almost 50 per cent of India’s young informal workforce and those outside it are willing to upskill to bridge India’s employability gap, according to the report by investment firm Omidyar Network India with research partner Redseer.

Announcing the decision of the MPC after its three-day deliberations, RBI Governor Shaktikanta Das said on Thursday that the committee unanimously decided to keep the repo rate at 6.5 per cent. Das said taking into account the economic factors, the MPC has predicted GDP growth at 6.5 per cent in FY24.