Page 40 - The Indian EYE 092724

BUSINESS EYE SEPTEMBER 27, 2024 | The Indian Eye 40

Good signs for economy as

FDI grows by 52% and private

investment cycle becomes stronger

India witnessed the highest foreign exchange reserves of USD 684 billion as of 30th

August 2024. India’s forex reserves increased by USD 64 billion from January to August

2024, the highest percentage increase amongst major forex reserves-holding countries

OUR BUREAU quarter. Signaling a rebound in for-
mal job creation, EPFO added 10.5
New Delhi
lakh new members in July 2024.
verall investment in India A significant 59.4 per cent of new
grew by 7.5 per cent in the members added in July 2024 were in
O April-June quarter which is the 18-25 age group, indicating that
indicative that the private investment most individuals joining the organized
cycle is strengthening, Ministry of Fi- workforce are youth, mainly first-time
nance’s monthly economic review said. job seekers.
Net Foreign Direct Investment “For the remaining part of the fi-
(FDI) inflows to India rose by 52.4 nancial year, a reasonable expectation
per cent during the first four months is that public expenditure will pick up,
of FY25, supported by a surge in providing added growth and invest-
gross FDI inflows. Gross FDI in- ment impetus.” Said the report
flows increased by 23.7 per cent, India’s real GDP grew 6.7 per
from USD 22.4 billion during the cent during the April-June quarter
first four months of FY24 to USD -- the first quarter of 2024-25 -- down
27.7 billion in the corresponding pe- from 8.2 per cent same quarter last
riod of FY25. India’s GDP grew by an impressive 8.2 per cent during the financial year 2023-24, continuing year. Weaker government spending
Manufacturing, financial services, ahead of the Lok Sabha election and
communication services, computer to be the fastest-growing major economy (File photo) a prolonged heatwave impacted eco-
services, and electricity and other en- nomic growth during the quarter.
ergy sectors accounted for more than of India’s external debt as of March yearly jump of 10 per cent. So far in “Growth in all major non-agricul-
three-fourths of the gross FDI inflows. 2024. Rising merchandise and ser- 2024, the total GST collection has tural sectors stayed well above 5 per
India witnessed the highest for- vices exports, coupled with stable for- been 10.1 per cent higher at Rs 9.13 cent in Q1, indicating broad-based
eign exchange reserves of USD 684 eign capital inflows, reflect the strong lakh crore, as against Rs 8.29 lakh expansion. With the advancing mon-
billion as of 30th August 2024. India’s position of India’s external sector. crore mopped up in the correspond- soon, kharif sowing has also picked up,
forex reserves increased by USD 64 Foreign portfolio investors re- ing period of 2023 brightening prospects of agricultural
billion from January to August 2024, mained net buyers over April - Au- “Steady growth in GST collec- production,” the report said.
the highest percentage increase gust 2024. Driven by stable capital in- tions, expansionary trends in purchas- India’s GDP grew by an impres-
amongst major forex reserves-holding flows, foreign exchange reserves have ing managers’ indices and growth in sive 8.2 per cent during the financial
countries. reached historically highest levels. air and port cargo indicate vigorous year 2023-24, continuing to be the
The forex reserves are sufficient Goods and Services Tax (GST) economic activity,” it said. fastest-growing major economy. The
to cover more than 11 months of collections in August, in gross terms, Labour market indicators indi- economy grew by 7.2 per cent in 2022-
imports and more than 100 per cent were at Rs 1.74 lakh crore, with a cated a strong outlook for the next 23 and 8.7 per cent in 2021-22.

Govt. to borrow Rs 6.61 lakh crore from market in second half of FY25

ut of gross market borrow- securities, including Rs 20,000 crore The market borrowing will be per cent), 40-year (15.9 per cent)
ing of Rs 14.01 lakh crore of Sovereign Green Bonds (SGrBs). spread over 3, 5, 7, 10, 15, 30, 40 and and 50-year (10.6 per cent).
Obudgeted for 2024-25, Rs The government, in consultation 50-year securities. “The Government will contin-
6.61 lakh crore or 47.2 per cent is with the Reserve Bank of India, has The share of borrowing (includ- ue to reserve the right to exercise
planned to be borrowed in the sec- finalized its borrowing programme ing SGrBs) under different matur- greenshoe option to retain an ad-
ond half, the Ministry of Finance for the second half of 2024-25. ities will be 3-year (5.3 per cent), ditional subscription of up to Rs
said in a statement on Thursday. The gross market borrowing of 5-year (10.6 per cent), 7-year (7.6 2,000 crore against each of the se-
These borrowings would be Rs 6.61 lakh crore shall be completed per cent), 10-year (24.8 per cent), curities indicated in the auction no-
done through the issuance of dated through 21 weekly auctions. 15-year (13.2 per cent), 30-year (12.1 tifications,” the ministry added.

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