Current Affairs - Economy

The Periodic Labour Force Survey (PLFS) revealed that the urban unemployment rate in India for individuals aged 15 years and above declined to 6.7% in the January-March 2024 period. This indicates a slight improvement in the urban employment scenario compared to the same period the previous year.

The annual UK-India Strategic Dialogue in London focused on reaffirming commitment to a mutually beneficial Free Trade Agreement (FTA), indicating the UK as the counterpart in negotiations.

The United Nations revised India's 2024 economic growth projection upwards to 6.9%, indicating a robust expansion driven by strong public investment and private consumption.

According to data from the Global Trade Research Initiative (GTRI), China emerged as India's largest trading partner in FY23-24, surpassing the United States. This shift in trade dynamics reflects the significant growth in two-way commerce between India and China, with trade values exceeding those of the US during this period.

Moody's predicts a 6.6% expansion for the Indian economy in FY25, reflecting their assessment of economic conditions and growth prospects. This forecast is expected to drive strong credit demand, particularly benefiting Non-Banking Financial Companies (NBFCs) despite challenges posed by rising funding costs.