India’s Economic Landscape: A Roundup of Recent Developments
In the ever-evolving economic landscape of India, several key developments have taken place in recent weeks, shaping the country’s financial outlook. From fluctuations in foreign exchange reserves to growth forecasts and policy decisions, here’s a roundup of the latest news from the Indian economy:
1) The Reserve Bank of India (RBI) reported a decline in India’s foreign exchange reserves by USD 2.922 billion, reaching USD 652.895 billion as of June 14. This comes after a significant increase in the previous week, with reserves hitting a record high of USD 655.817 billion.
2) According to the HSBC survey, the final Manufacturing, Services, and Composite Purchasing Managers’ Index (PMI) figure rose to 60.9 in June, up from a revised figure of 60.5 in May.
3) India’s net direct tax collections for FY25 grew by 9.81% to Rs 4.62 trillion till June 16, with collections contributing Rs 1.48 trillion during the period.
4) The provisional figures for the Gross collection of Direct Taxes for FY25 stand at Rs. 5,15,986 crores, showing a growth of 22.19% over the previous financial year.
5) The provisional figures of Direct Tax collections for FY25 show a 20.99% increase in net collections compared to the previous year.
6) Total Advance Tax collections for FY25 saw a growth of 27.34% compared to the corresponding period of the previous financial year.
7) Refunds amounting to Rs. 53,322 crores have been issued in FY25, marking a 33.70% increase over the previous year.
8) The RBI highlighted concerns about the impact of hot summers and low reservoir levels on summer crops, potentially affecting food prices and inflation targets.
9) Fitch Ratings raised India’s growth forecast for FY25 to 7.2% but warned of risks due to the ongoing heatwave.
10) Overseas Indians parked $1 billion in NRI deposit schemes in April, reflecting confidence in India’s growth story.
11) Formal job creation under the Employees’ Provident Fund Organisation saw a 10% increase in April 2024.
12) Funds held by Indian individuals and firms in Swiss banks experienced a sharp decline in 2023.
13) The RBI’s Monetary Policy Committee raised concerns about inflation pressures and maintained the repo rate at 6.5%.
14) The GST Council made significant decisions on exemptions, rate changes, and other measures to streamline the tax system.
These developments paint a dynamic picture of India’s economic landscape, showcasing both challenges and opportunities as the country navigates through various financial indicators and policy decisions.
