Current Affairs - Economy

In August 2024, the Employees' Provident Fund Organisation (EPFO) reported a 9% year-on-year growth in employment opportunities, highlighting the expanding job market in India. EPFO added 18.53 lakh net members during this period, with 9.30 lakh new enrollments, including 2.53 lakh female members. These numbers reflect a steady increase in employment, especially when compared to previous months such as July, June, and May. The growth rate underscores the positive impact of EPFO's efforts to improve job accessibility across sectors.

The IMF report projects that global public debt will reach 93% of global GDP in 2024 and approach 100% by 2030. This significant increase in debt levels raises concerns about sovereign yield volatility and debt risks. To mitigate these risks, the IMF recommends that countries implement fiscal adjustments between 3.0% and 4.5% of GDP. Additionally, the report introduces a "debt-at-risk" method to assess uncertainties in debt projections, estimating a potential surge to 115% of GDP by 2026 in a worst-case scenario. Effective management of debt levels is crucial for maintaining global economic stability.

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).