Q. With reference to the Economic Survey 2024-25, consider the following statements: 1.It highlights the need for corporate profit growth to align with wage growth to sustain economic demand and stability. 2.It stresses the need for indigenisation of technology and raw materials to facilitate India’s transition to electric mobility and reduce reliance on imports. Which of the statement(s) given above is/are correct?
Explanations –
Statements 1 and 2 are correct. The Economic Survey 2024-25 discusses the disproportionate growth between corporate profits and wages. It notes that while corporate profits surged to a 15-year high (4.8% of GDP in FY24), wage growth stagnated, particularly in entry-level IT jobs. This disparity risks curbing demand, exacerbating income inequality, and slowing economic momentum. The Survey raises concerns about India’s heavy reliance on China for critical EV components (75% of lithium-ion batteries imported) and minerals (e.g., China processes 60-90% of global nickel, cobalt, and lithium). It calls for urgent indigenization of EV technology and raw materials, advocating for R&D in advanced battery technologies (sodium-ion, solid-state) and investments in recycling infrastructure. The Survey also recommends policy shifts to prioritize public transportation over private EVs, given India’s limited land and import vulnerabilities.
Source: The Hindu
