![\"Indian](\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2024\/03\/Indian-Economy-Growth.png?resize=403%2C314&ssl=1\")
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Source<\/strong>-This post on India\u2019s growth surprise has been created based on the article \u201cDK Joshi writes India\u2019s growth surprise<\/strong>\u201d published in \u201cThe Indian Express<\/strong>\u201d on 2 March 2024.<\/p>\n UPSC Syllabus<\/strong>–GS Paper 3<\/strong>– Indian Economy and issues relating to Planning, Mobilization of Resources, Growth.<\/p>\n News<\/strong>-The article discusses GDP forecast and observation of recently released household consumption expenditure data. Indian Economy Growth<\/strong><\/p>\n 1) GDP growth rate<\/strong>– Growth rate is 7.6 per cent with the first three quarters growing at an average of 8.2 per cent, the implicit fourth-quarter growth turns out to be 5.9 per cent. In its latest monetary policy statement, the RBI had projected India\u2019s GDP growth at 7 per cent for next year.<\/p>\n Reason behind this trend<\/strong>– There is strengthening of bank and corporate balance sheets. Further, the government has given great push to infrastructure.<\/p>\n 2) Private consumption<\/strong>– It consists of Rural and urban consumption. Rural consumption was slower than urban consumption since high food inflation affects rural consumption more.<\/p>\n Read more- All India Household Consumption Expenditure Survey 2022-23- Explained Pointwise<\/a><\/p>\n 1) It shows shifts in consumption expenditure towards non-food items over time<\/strong>. This usually happens with rising per capita income.<\/p>\n 2) There is a shift from cereals to processed items.<\/p>\n 3) There is a split of national savings between the government, households and the private sector.<\/strong> The overall savings rate (savings\/GDP) at around 30 per cent for 2022-23.<\/p>\n 4) Household savings are 61 per cent of total savings. They are split between financial and physical savings<\/strong>.<\/p>\n Finding<\/strong>-It shows a sharp fall in net financial savings of households to 5.3 per cent of GDP in 2022-23 from 7.3 per cent in 2021-22.<\/p>\n Reason for decline of financial savings<\/strong>-Households have used borrowings to acquire physical assets such as houses which led to decline of financial saving. 5) Private corporate investment<\/strong> Findings<\/strong>– Private corporate investment did not show any positive sign of revival. Its share of total investments was stagnant. However, due to Production-Linked Incentive (PLI) scheme, notably in pharmaceuticals and electronics, there is an improvement in private investment.<\/p>\n Reforms that can be taken to improve private investment-<\/strong>There is a need to ensure consistency in policies and reduction in compliance cost to inspire confidence of corporate investors.<\/p>\n Question for practice<\/strong><\/p>\n Highlight the recent findings of household consumption expenditure data?<\/p>\n","protected":false},"excerpt":{"rendered":" Source-This post on India\u2019s growth surprise has been created based on the article \u201cDK Joshi writes India\u2019s growth surprise\u201d published in \u201cThe Indian Express\u201d on 2 March 2024. UPSC Syllabus–GS Paper 3– Indian Economy and issues relating to Planning, Mobilization of Resources, Growth. News-The article discusses GDP forecast and observation of recently released household consumption… Continue reading India\u2019s growth surprise<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":285546,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[216,8184,10500],"class_list":["post-285423","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","tag-indian-economy","tag-indian-express","entry"],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2024\/03\/Indian-Economy-Growth.png?fit=1280%2C1000&ssl=1","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/285423","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=285423"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/285423\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media\/285546"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=285423"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=285423"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=285423"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}What are some important statistics about Indian economy?<\/strong><\/h2>\n
What are the important findings of recently released <\/strong>household consumption expenditure data?<\/strong><\/h2>\n
\nHowever, during the pandemic, there was an increase in the financial savings rate while physical savings dropped.<\/p>\n
\nThis is the third important data point released by the NSO<\/strong>. This is the first-time comprehensive data on private corporate investments has been made available.<\/p>\n