Indian Economy

November 2023 report

 Indian Economy Overall
1. India's economy is expected to 4. The Indian government has also 7. The Indian government has also launched
grow between 6.5% and 6.8% launched a new initiative called "Digital a new initiative called "Startup India 2.0" to
India 2.0" to promote the use of digital promote the growth of startups in the
between FY23 and FY24, followed by
technologies in the country. The initiative country. The initiative aims to provide
an average of 6.65% and 7.95% over aims to create a digital infrastructure that funding, mentorship, and other support to
the next two years. will enable the growth of new businesses startups, as well as create a favorable
and industries. regulatory environment for them.
2. The Reserve Bank of India (RBI) has
reported that inflation readings of 5. The Indian pharmaceutical industry is 8. The Indian government has announced a
around 5% and 4.9% in September expected to grow at a CAGR of 11.5% new policy to promote the use of artificial
between 2023 and 2028, driven by factors intelligence (AI) in the country. The policy
and October 2023, respectively, are a
such as the increasing prevalence of aims to create a $1 trillion AI industry in
welcome relief from the average of chronic diseases and the growing demand India by 2035, which includes $500 billion
6.7% in 2022-23 and 7.1% in July- for generic drugs. from the domestic market and $500 billion
August 2023. from exports.
6. The Indian government has announced a
3. The Indian government has new policy to promote the use of 9. The Indian government has also launched
renewable energy in the country. The a new initiative called "Skill India 2.0" to
announced a new policy to promote promote the development of skills in the
policy aims to achieve a 175 GW
the use of electric vehicles (EVs) in the country. The initiative aims to provide
renewable energy capacity by 2025, which
country. The policy aims to make India includes 100 GW of solar power, 60 GW of training and certification to millions of
a global hub for EV manufacturing and wind power, 10 GW of biomass power, and people in various sectors, including
create 10 million jobs in the sector. 5 GW of small hydropower. healthcare, tourism, and construction.
 INDIAN ECONOMY GROWTH
The Indian economy has been experiencing significant growth in various sectors, which has contributed to its positive outlook. Some of the key sectors
that have shown growth include

The agricultural sector is expected to grow at 4% in the current

India has made significant progress in improving its ranking on the World
financial year. This sector includes a wide range of industries,
Bank's Doing Business index. India has jumped 67 places in the past five years
such as farming, fishing, and forestry. The agricultural sector has
to reach 63rd position in the World Bank's Doing Business 2023 index.
been growing at a steady pace in recent years and is expected to
continue to grow in the coming years.
The services sector is expected to grow at 8.5% in the current financial year.
This sector includes a wide range of industries, such as tourism, hospitality,
and healthcare. The services sector has been growing at a steady pace in The overall outlook for the Indian economy is positive. The
recent years and is expected to continue to grow in the coming years economy is expected to continue to grow at a steady pace in the
coming years. This growth will be driven by a number of factors,
The manufacturing sector is expected to grow at 7.5% in the current financial
including a strong domestic market, a growing middle class, and
year. This sector includes a wide range of industries, such as automobiles,
a favorable investment climate. The services sector, the
electronics, and pharmaceuticals. The manufacturing sector has been growing
manufacturing sector, and the agricultural sector are all
at a steady pace in recent years and is expected to continue to grow in the
expected to continue to grow in the coming years. This growth
coming years.
will create jobs and boost incomes, which will further fuel
economic growth.
INDIAN ECONOMY GROWTH
1. Manufacturing: The manufacturing sector, 2. Government Spending: Government
which accounted for just 17% of the economy, spending and investments have
expanded 13.9% year-on-year in the September increased, contributing to faster-than-
quarter, compared to a revised 4.7% in the expected economic growth. This spending
previous three months. This growth is attributed has been particularly evident in the run-
to factors such as robust corporate profits, a
up to elections, with the government
strong fiscal impulse, and a boisterous financial
boosting spending before elections to
sector.
stimulate growth.
3. Small and Medium Enterprises (SMEs): The SME
MSME sector has experienced an uptick in the
past two quarters, which is expected to help
India achieve broad-based growth at the 4. Domestic Demand: The Indian
grassroots levels. This growth is essential for economy has been driven by robust
ensuring sustained economic activity and domestic demand, strong investment
reaping the potential benefits of India's
demographic dividend. activity, and government investment in
infrastructure and development projects.
5. Emerging as a Fast-Growing Economy: India's
This demand has contributed to the
real GDP expanded at an estimated 6.9% in
FY22/23, underpinned by strong investment expansion of the middle-income class and
activity and robust domestic demand. This the aspirations of the young population,
growth has led to India emerging as one of the which is the largest in the world.
fastest-growing economies in the world, despite
challenges in the global environment, such as
supply chain disruptions, tightening of global
monetary policies, and inflationary pressures
Growth Drivers
4. Economic Reforms: The economic reforms
1.High Income Elasticity of Demand: The demand initiated in 1991 have played a crucial role in
for services has been observed to increase at a the growth of the service sector. These
faster rate than the demand for commodities with reforms increased the demand for the
the increase in income, as the income elasticity of manufacturing industry, which, in turn,
demand for services is more than one. benefited the service sector. The liberalization
of the financial sector and reforms in certain
2. Technological and Structural Changes: The Indian segments of infrastructure have also
economy has undergone significant technological contributed to the growth of services.
and structural changes, leading to a shift from the
primary to the tertiary sectors in terms of 5. Global Demand for Services Exports:
economic dependence. This shift has contributed Growing external demand for services exports
to the growth of the service sector. has been an important factor contributing to
the growth of the service sector in India.
3. Information Technology Revolution: The advent
of the information technology revolution has
enabled the delivery of services over long distances 6. Deregulation of the Services Sector: There is
at a reasonable cost, leading to an increase in the considerable scope for future rapid growth in
trading of services worldwide and benefiting India. the Indian service economy, provided that
deregulation of the services sector continuees.
GDP Growth
Projections and predictions for November 2023 suggest
The Economic Survey 2022-23 projects a
that India's GDP growth will continue its upward
baseline GDP growth of 6.5 per cent in real
trajectory, driven by various factors such as government
terms in FY24, depending on the trajectory of
policies, consumption trends, foreign investments, and
economic and political developments globally.
technological advancements. These projections indicate a
promising future for India's economy,

The growth drivers of the Indian economy in the

current year include a rebound of private The RBI had predicted 6.5 per cent growth in Q2 of
consumption, higher capital expenditure, near- 2023-24 and projects headline inflation at 6.8 per
universal vaccination coverage, return of migrant cent in FY23, which is outside its target range.
workers to construction activities, strengthening
of the balance sheets of the corporates and the
banking sector, and a surge in exports. Foreign investments have played a significant role in
driving India's accelerating GDP growth. These
Several factors are contributing to the accelerating GDP growth in India. Firstly, the investments have infused capital, technology, and
implementation of economic reforms has encouraged foreign investment. Secondly, expertise, leading to increased productivity and job
advancements in technology have led to increased productivity and innovation. creation. Additionally, foreign investments have
Additionally, the government's focus on infrastructure development and ease of doing stimulated domestic demand, encouraged innovation,
business has created a favorable environment for growth. Lastly, the rising middle class and enhanced competitiveness, making India an
and consumer spending have boosted domestic demand, driving economic expansion. attractive destination for global investors.
Indian Export

DIVERSIFICATION
INCREASED ACCESS TO
ECONOMIC OF MARKETS AND
JOB CREATION PRODUCTIVITY AND TECHNOLOGY AND
GROWTH REDUCED
COMPETITIVENESS KNOWLEDGE
VULNERABILITY

Engaging in
Exports play a crucial Participating in
international trade
role in driving India's international trade
Export-oriented exposes Indian
economic growth. By forces Indian Exporting to multiple
industries are a businesses to new
selling its goods to businesses to become countries helps India
significant source of technologies,
foreign markets, India more efficient and reduce its reliance on a
employment in India. innovations, and best
generates foreign adopt globally single market,
As exports increase, practices from around
exchange earnings, competitive practices. mitigating the risks
these industries the world. This
which can be used to This leads to improved associated with
expand, creating new knowledge transfer can
finance imports, productivity, lower economic downturns
job opportunities for foster technological
infrastructure costs, and enhanced or political instability in
skilled and unskilled advancements and
development, and competitiveness in the any particular region.
workers. enhance India's overall
other economic global market.
competitiveness.
activities.
 PROBLEM READ HYPOTHESIZE RESEARCH CONCLUSION

When India exports

When India exports goods to other
When India exports
more goods and countries, it earns
Exporting India's more goods and
Active participation in services than it foreign currency, which
products to foreign services than it
international trade imports, it has a trade can be used to import
markets helps establish imports, it has a trade
fosters stronger surplus. This can help goods and services that
the country's brand surplus. This can help
diplomatic and to improve the are not available
reputation and to improve the
economic ties with country's balance of domestically or to
recognition on the country's balance of
other countries. These payments, which is a invest in new
global stage. This payments, which is a
relationships can lead measure of the businesses and
international exposure measure of the
to increased country's overall infrastructure. In
can attract foreign country's overall
cooperation, economic health. In November 2023, India's
investment and economic health. In
collaboration, and 2023, India's trade foreign exchange
partnerships, further 2023, India's trade
mutual benefits in surplus was $150.5 reserves were at $630.6
boosting India's surplus was $150.5
various spheres. billion, the highest billion, the highest level
economic growth. billion, the highest
level ever recorded. ever recorded.
level ever recorded.
What’s New In SC/ST in October 2023?
Andhra Pradesh's Industrial Growth Soars
According to the United Nations
Andhra Pradesh's industrial growth has
Development Programme
tripled, reaching a notable 10.59%,
(UNDP) and the Oxford Poverty
reflecting the state government's efforts to
and Human Development
foster a conducive environment for
Initiative (OPHI)'s global
industrial development and showcasing the
multidimensional poverty index
positive impact of initiatives aimed at
(MPI), half of scheduled tribes
attracting investments, promoting
were considered poor
entrepreneurship, and boosting the overall
compared to 15% of higher
economic landscape
castes

Additional Insights
Government of India supports Jharkhand CM criticizes
Sarojininagar MLA Rajeshwar Singh's initiatives include
Shree Gautam Buddha Centre's anti-tribal stance,
Singh initiates schemes to establishing a space for tribal
Secondary School in Nepal, launches initiatives, and
uplift SC/ST communities, gatherings and empowering
inaugurating school and lab challenges opposition, aiming
offering a Rs 20 lakh grant for women with a sewing center,
buildings to strengthen to address tribal rights and
tribal society office and toilets. while also honoring Birsa
bilateral development welfare while announcing
Munda with a gate and
cooperation and uplift Nepal's development projects worth Rs
housing for 140 families.
education sector. 212 crore.