Current Affairs - Economy

The Reserve Bank of India's Monetary Policy Committee (MPC) has maintained the repo rate at 6.5% for the 10th consecutive time. This decision reflects the MPC's balanced approach to managing inflation and supporting economic growth. The repo rate remains a crucial tool for regulating money supply and influencing interest rates in the economy. By keeping the rate unchanged, the RBI aims to sustain India's growth momentum, projected at 7.2% for FY25, while maintaining inflation within the target range of 4%.

According to the NABARD survey, the average monthly income of rural households rose significantly by over 57%, from ₹8,059 in 2016-17 to ₹12,698 in 2021-22. This increase reflects improvements in various economic activities and livelihoods in rural areas. In addition to rising incomes, monthly expenditures also increased from over ₹6,600 to over ₹11,200, indicating that households are spending more as their income rises. Along with increased savings and enhanced pension coverage, this data highlights the positive economic trends in rural India.

Himachal Pradesh is embracing Karnataka's successful skill development initiatives to boost employability and secure international job placements for its residents. With Karnataka's guidance, Himachal Pradesh aims to establish similar upskilling programs, leveraging the state's expertise in this area. This strategic collaboration is spearheaded by Rajesh Kumar Dharmani, Himachal Pradesh's minister for town planning, housing, and technical education. The state has already made significant strides in skill development, targeting around 1 lakh youth during 2018-2022 through Himachal Pradesh Kaushal Vikas Nigam (HPKVN).

The Reserve Bank of India (RBI) has projected a GDP growth rate of 7.2% for the financial year 2024-25. This optimistic projection is attributed to strong domestic demand, low raw material costs, and robust growth in the manufacturing sector. While the first quarter recorded a growth rate of 6.7%, the RBI has forecasted steady increases for the remaining quarters, with GDP growth rates of 7%, 7.4%, and 7.4% for Q2, Q3, and Q4 respectively. The Monetary Policy Committee, in a 5:1 vote, decided to keep interest rates unchanged.

As of September 20, India’s foreign exchange reserves reached a record high of $692.3 billion, driven by market interventions by the Reserve Bank of India (RBI) and inflows into stocks and bonds. This reserve includes $605.7 billion in foreign currency assets, $63.6 billion in gold reserves, and $18.5 billion in Special Drawing Rights (SDRs) with the International Monetary Fund. The rise in reserves helps India maintain financial stability, manage currency volatility, and enhance investor confidence.