Current Affairs - Economy

According to a NITI Aayog report, India has set an ambitious target to achieve $500 billion in electronics manufacturing by 2030. This target comprises $350 billion from finished goods and $150 billion from components. The current electronics production in India stands at $101 billion, indicating significant growth potential in the sector. Achieving this goal is expected to boost employment to around 6 million jobs and substantially increase exports.

FICCI’s Economic Outlook Survey projects a robust 7% GDP growth for India in the fiscal year 2024-25. This projection reflects optimism among participating economists about India's economic prospects, despite global headwinds and inflationary pressures. The Reserve Bank of India (RBI) has also adjusted its GDP growth projection to 7.2% for the same period.

The Asian Development Bank (ADB) has maintained India's GDP growth forecast at 7% for the financial year FY25. This forecast is based on expectations of a rebound in agriculture due to above-normal monsoon projections and continued robust growth in services and industry sectors.

In June 2024, India's Wholesale Price Index (WPI) experienced a year-on-year increase of 3.36%. This rise was primarily driven by higher prices in food articles, manufactured food products, crude petroleum & natural gas, and mineral oils. The overall WPI for all commodities increased to 153.9, based on the 2011-12 base year, marking a 0.39% rise from May 2024. The significant factors contributing to this inflation rate include a noticeable increase in the prices of primary articles and manufactured products.

Russia has been upgraded from an upper-middle-income to a high-income country by the World Bank, despite ongoing Western sanctions. This economic milestone reflects Russia's development and economic growth, positioning it in the category of high-income nations according to World Bank classifications. The upgrade signifies significant economic progress for Russia, marking a shift in its global economic standing and potential implications for international economic relations and policies.