Current Affairs - Economy

As per the SBI report, India’s rural poverty rate in 2024 was 4.86%, a significant decline from 25.7% in FY12. Urban poverty also saw a substantial drop from 13.7% in FY12 to 4.09% in FY24. These figures highlight the country’s progress in reducing poverty across both rural and urban areas. The improvements are attributed to sustained economic growth, inflation-adjusted poverty lines, and targeted welfare measures aimed at uplifting disadvantaged communities.

In 2024, India's foreign exchange reserves surpassed $700 billion, making it the 4th largest globally. This reflects the country’s strong economic performance and its ability to attract substantial foreign investments over the past decade. The ranking signifies India's growing importance in global finance and its strategic positioning in international trade.

Deloitte forecasts the Indian economy to grow at 6.5-6.8% in FY25, driven by strong domestic consumption, infrastructure development, and digitisation efforts. While challenges such as geopolitical tensions and global liquidity constraints may pose risks, India’s resilience in services, manufacturing exports, and stable capital markets provides a solid foundation for sustained economic growth.

The Pradhan Mantri Shram Yogi Maandhan Yojana (PM-SMY) is a central pension scheme launched in 2019 to benefit workers in the unorganised sector, such as street vendors, domestic workers, and agricultural labourers. These workers, with a monthly income of up to Rs 15,000, contribute a small premium with the government matching their contribution. Despite its ambitious goals, the scheme has faced challenges, including low enrollment, reduced government funding, and minimal coverage relative to the vast unorganised workforce, highlighting the need for revisions to enhance its effectiveness.

India's projected real GDP growth rate for FY25 and FY26 is estimated at 6.5%, supported by robust economic fundamentals despite some recent challenges. While Q2 FY25 GDP growth eased to 5.4% from 6.7% in Q1 FY25 due to factors like a decline in manufacturing PMI and a slowdown in private consumption, inflation trends show improvement with CPI falling to 5.5% in November. The 6.5% projection reflects optimism for sustained economic growth.