Current Affairs - Economy

The National Council of Applied Economic Research (NCAER) forecasts India's GDP growth rate for the fiscal year 2024-25 (FY25) to potentially reach around 7.5%. This outlook suggests optimism about the resilience and growth momentum of the Indian economy, supported by various high-frequency indicators showing robust performance across sectors.

S&P Global Ratings has maintained India's GDP growth estimate for FY25 at 6.8%. This projection takes into account factors such as high interest rates and reduced fiscal stimulus impacting demand in non-agricultural sectors, indicating a moderated growth outlook compared to previous fiscal years.

According to UNCTAD's World Investment Report, India's ranking among global FDI recipients fell to 15th in 2023, marking a significant decline from its previous rank due to a 43% decrease in FDI inflows compared to 2022. This drop reflects broader global trends of cautious multinational investments amid economic uncertainties and geopolitical tensions impacting investment flows worldwide.

The Union Cabinet has approved the development of a new major port at Vadhavan in Maharashtra's Palghar District. With a projected cost of ₹76,220 crore, this Greenfield deep draft port aims to enhance maritime infrastructure and contribute significantly to India's economic growth and trade capabilities.

The United Kingdom (UK) has overtaken China to become India’s fourth-largest export market as of May 2024, according to Commerce Department data. India's exports to the UK grew significantly, reaching $1.37 billion, driven by various sectors including machinery, food items, pharmaceutical products, textiles, jewellery, iron, and steel. This shift reflects evolving trade dynamics and the strategic importance of the UK market for Indian exports amidst global economic changes and recovery phases.