{"id":264480,"date":"2023-10-14T14:19:24","date_gmt":"2023-10-14T14:19:24","guid":{"rendered":"https:\/\/forumias.com\/blog\/?p=264480"},"modified":"2023-10-14T14:19:24","modified_gmt":"2023-10-14T14:19:24","slug":"the-economic-mosaic","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/the-economic-mosaic\/","title":{"rendered":"The economic mosaic"},"content":{"rendered":"

Source<\/strong>: The post is based on the article\u00a0\u201cThe economic mosaic<\/strong>\u201d published in <\/strong>Business Standard <\/strong>on 14th<\/sup> October 2023<\/strong>.<\/p>\n

Syllabus: GS 3 \u2013 Indian Economy \u2013 Growth & Development<\/strong><\/p>\n

Relevance: <\/strong>Findings of the RBI survey on key economic sector<\/p>\n

News: <\/strong>The RBI has recently conducted a survey of consumer and business opinions, offering insights beyond just growth and inflation figures.<\/p>\n

What are the key findings of the survey?<\/strong><\/h2>\n

Manufacturing Sector:<\/strong> The manufacturing sector lags the rest of the economy, and there’s no evidence of it growing faster. Capacity utilization in manufacturing is stuck in the low 70s, indicating a lack of investment in new manufacturing capacity that could boost economic growth.<\/p>\n

Further, new orders for manufacturers have dropped significantly, with growth falling from 40% to almost zero in the past four quarters. However, despite this, the business expectations index is at its highest level since 2015-16.<\/p>\n

Inflation:<\/strong> Consumer surveys show that people are still not very optimistic about the economy. Inflation is a major concern, with more than 80% saying that prices are rising faster.<\/p>\n

Further, consumers are spending more on essentials and less on non-essentials. However, many people still remain hopeful about the future.<\/p>\n

Employment:<\/strong> Employment has improved mainly due to more self-employed people, as the number of salaried jobs has dropped.<\/p>\n

This indicates that those who can’t find regular or even part-time jobs are forced to become self-employed. If this is the case, then the improvement in employment numbers may be misleading.<\/p>\n

Banking Sector:<\/strong> Bank lending has increased, with the most significant growth in retail and personal loans.<\/p>\n

This may be because businesses have enough cash and don’t require loans, while consumers are confident about their future income and are borrowing to buy things like cars and houses.<\/p>\n

However, the RBI has warned that this skewed lending pattern could be risky, as household debt is rising.<\/p>\n

What is the way ahead?<\/strong><\/h2>\n

The economy is moving forward at a steady growth rate of over 6%, which is positive when considering the global situation. However, there are no signs of rapid growth in the near future.<\/p>\n","protected":false},"excerpt":{"rendered":"

Source: The post is based on the article\u00a0\u201cThe economic mosaic\u201d published in Business Standard on 14th October 2023. Syllabus: GS 3 \u2013 Indian Economy \u2013 Growth & Development Relevance: Findings of the RBI survey on key economic sector News: The RBI has recently conducted a survey of consumer and business opinions, offering insights beyond just… Continue reading The economic mosaic<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230],"tags":[10503,216,8184],"class_list":["post-264480","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","tag-business-standard","tag-gs-paper-3","tag-indian-economy","entry"],"jetpack_featured_media_url":"","views":{"total":6,"cached_at":"","cached_date":1698381898},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/264480","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=264480"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/264480\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=264480"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=264480"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=264480"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}