Current Affairs - Economy

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.

India's industrial production growth rate in March 2024 was 4.9%, as reported by the Ministry of Statistics and Programme Implementation. This figure represents a decrease from the 5.7% growth recorded in February 2024. Despite the slowdown, the Index of Industrial Production (IIP) for the fiscal year 2023-24 showed a modest increase, reaching 5.8%. The manufacturing sector played a crucial role in this growth, with specific areas such as basic metals, pharmaceuticals, and other transport equipment contributing significantly to the overall industrial output.

India Ratings and Research have raised their GDP growth estimate for FY25 to 7.1%. This upward revision is attributed to robust government spending, improved corporate and banking sector health, and a potential increase in private corporate capital expenditure. The agency also notes that despite these positive factors, challenges such as uneven consumption demand and global economic sluggishness could impact growth dynamics. The focus on sustained real wage growth is highlighted as crucial for a more inclusive and sustainable consumption recovery, reflecting the complexities within India's economic landscape.

The Organisation for Economic Co-operation and Development (OECD) has raised India’s GDP growth forecast to 6.6% for the fiscal year 2024-25. This upward revision is attributed to increased public investment and improved business sentiment, driving domestic demand and economic growth.