Like the global GDP, the Indian economy is expected to slow down. However, it will help in controlling inflation. The Finance Ministry said on Monday that the country faces challenges to sustain growth, manage fiscal deficit, controlling inflation, and current account deficit shortly. However, India is in a better position to deal with these challenges than other countries.
The ministry said in the monthly economic review, that developing countries are facing similar challenges. India is in a better position among them. This is because of the stability in the financial sector and the success of the Kovid vaccination. The economy came out of the pre-corona level in 2021-22. The growth rate of real GDP in the last financial year stood at 8.7%, which is 1.5% higher than in 2019-20. India's growth prospects are strong. Capital formation and job creation are expected to pick up in the remainder of the current decade.
Fiscal deficit will increase Rupee continues to fall
The fiscal and current account deficit is expected to increase after the reduction in excise duty on diesel petrol. This will increase the effect of costly imports and depreciate the value of the rupee.
The risk of a fall in the value of the rupee is there so long as FPIs keep on withdrawing capital out of concern about the policy rate hike to control inflation in developed countries.
The risk of high inflation is lower than in the world
According to the report, retail inflation in India remains at a high level due to expensive imports. Due to excessive heat, the prices of food items in the domestic market have increased. However, the price of crude oil may come down in the coming time. High inflation is expected in the world with a low economic growth rate, but the risk is low in India.
On the RBI's monetary policy for May 2022, the ministry said, the repo rate has been increased to control inflation. The central bank has also taken steps to withdraw the excess cash available in banks. The impact of these measures will be seen on the growth rate and inflation of the economy in the coming months. Retail inflation is above 6% for 4 months.
$100 billion can be withdrawn from the market: RBI
The RBI said that in adverse conditions, the potential portfolio withdrawal in a year could be around 3.2 percent of GDP, or up to $100 billion. Potential capital outflows in a black swan event involving multiple shocks can go up to 7.7 percent. Hence, there is a need to maintain a liquidity surplus to avoid volatility. The net withdrawals from the equity market of portfolio investors have so far reached 1.98 lakh crores in the calendar year 2022. The Black Swan event could be the simultaneous occurrence of all the adverse shocks experienced in Indian history, which could lead to an economic storm.
Four out of every 10 employees want to leave the job even after increasing the salary
During the epidemic, people have changed jobs fiercely in every field. This cycle may continue in the future as well. The special thing is that despite the salary increase, four out of every 10 employees want to leave the job. According to the report of Management Consulting Company of Naman HR, employees from three sectors are at the forefront of job loss despite the salary increase. The service sector is at the forefront with 37 percent. The manufacturing sector is second with 31% and the IT sector is in the third position with 27%. The reason for leaving the job is also the slow increase in salary.
employees thinking of starting a business
One employee in 10 is considering leaving his job to start his own business. 35% of employees in the age group of 30-45 years want to become entrepreneurs. 44% of employees aged 20-29 are not currently considering resignation.
IND vs AUS: 'You judge by runs, we look at the impact', coach Gambhir's reply to the reporter about Rohit's form
India defeated Australia in the semi-finals of the Champions Trophy 2025 and knocked them out of the tournament. The Indian team, led by captain Rohit Sharma, has performed brilliantly in this
Supreme Court: FIR of crimes cannot be canceled by agreement, strictness will be imposed on those who extort money
The Supreme Court said, in a heinous crime having a grave impact on society, FIR cannot be quashed on the ground of agreement between the victim, the offender, or the complainant. If this is done then
Children Mobile Use Ban: Ban on mobile use of children in a village of Maharashtra, a fine will be imposed if not accepted
In Bansi village of Maharashtra's Yavatmal, the panchayat has banned the use of mobile phones by children below 18 years of age. Sarpanch Gajanan Tele said on Thursday that during the Corona epidemic
Drone Attack In Iran: Iran blames Israel for the drone attack, threatens to retaliate
Iran on Thursday blamed Israel for the drone attack. Let us tell you that on Saturday, Iran's defense base in the central city of Isfahan was targeted. Iran's mission to the United Nations blamed
TBSE 10th 12th Result 2023 Out: Tripura Board 10th-12th results released, check this way
TBSE 10th 12th Result 2023 Out Tripura Board of Secondary Education (TBSE) has declared the Tripura Board Class 10th, 12th Result 2023. Candidates who appeared in the Tripura Board 10th-12th
Rahul Gandhi London Visit: Rahul went to London for niece's graduation ceremony; Congress hits back at BJP's attacks
Rahul Gandhi is once again on a foreign tour. Congress on Tuesday clarified that Rahul has gone to London to attend his niece's graduation ceremony. He will return soon. Questions were raised on Rahul
'58,929 occupied... but Waqf has many rights to protect the properties', the government told the powers of the board in the Lok Sabha.
The Central Government on Wednesday (November 27, 2024) told the Lok Sabha that a total of 58,929 Waqf properties in the country are facing encroachment, out of which 869 are in Karnataka. Union
Lokah: After Akshay Kumar, now Alia Bhatt praises 'Lokah', expressed happiness over the response the film is getting
The recent Malayalam film 'Lokah: Chapter 1' is doing great at the box office. The film is being appreciated by both the audience and the critics. Not only this, now, gradually, the celebs are also
Jhansi fire incident: Compensation announced in the accident, Rs 5 lakh each to the families of the deceased and Rs 50,000 to the injured
The government has announced a compensation of Rs 5 lakh each to the families of the newborns who died in the Jhansi Medical College accident. The families of the injured will get Rs 50,000 each. The
Budget 2023: The budget session will start today with President's address, and AAP will boycott. 10 big things
The budget session of the Parliament is going to start today. The budget session will be held in two phases. The first session will run from January 31 to February 13, while the second phase will run
