Current Affairs - Economy

The United Nations revised India's 2024 economic growth projection upwards to 6.9%, indicating a robust expansion driven by strong public investment and private consumption.

According to data from the Global Trade Research Initiative (GTRI), China emerged as India's largest trading partner in FY23-24, surpassing the United States. This shift in trade dynamics reflects the significant growth in two-way commerce between India and China, with trade values exceeding those of the US during this period.

Moody's predicts a 6.6% expansion for the Indian economy in FY25, reflecting their assessment of economic conditions and growth prospects. This forecast is expected to drive strong credit demand, particularly benefiting Non-Banking Financial Companies (NBFCs) despite challenges posed by rising funding costs.

Vietnam has urged the United States administration to reclassify its status from "non-market economy" to "market economy." This reclassification would bring relief to Vietnam by potentially reducing high taxes on imports from Southeast Asian nations.

India's retail inflation eased to an 11-month low of 4.83% in April, as reported by government data. This figure falls within the Reserve Bank of India's tolerance band of 2-6%. While the overall inflation moderated, the food basket's inflation remained elevated at 8.7%, reflecting varying trends across different sectors in India's economy.