Current Affairs - Economy

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.

The Asian Development Bank (ADB) has retained its forecast for India's GDP growth rate at 7% for FY24, driven by strong performance in agriculture, industry, and services. This growth rate is attributed to the government's fiscal consolidation efforts and resilience amidst global geopolitical challenges. Key growth drivers for FY24 include agricultural improvements, robust performance in the industrial and services sectors, and rural spending. The ADB also forecasts a growth rate of 7.2% for FY25, driven by private investments, urban consumption, and job creation through employment-linked incentives.

S&P Global Ratings has maintained its economic growth forecast for India at 6.8% for the financial year 2024-25. This forecast aligns with their projection of steady growth for the country. Comparatively, other agencies like the Reserve Bank of India (RBI) and Moody's have slightly different forecasts, with the RBI estimating a 7.2% growth for the same period and Moody's predicting a growth rate of 7.2% for 2024 and 6.6% for 2025.