{"id":15560,"date":"2023-11-09T11:52:23","date_gmt":"2023-11-09T11:52:23","guid":{"rendered":"https:\/\/edukemy.com\/blog\/?p=15560"},"modified":"2023-11-09T11:52:25","modified_gmt":"2023-11-09T11:52:25","slug":"indias-economy-on-the-upswing-upsc-daily-editorial-analysis-20th-october-2023","status":"publish","type":"post","link":"https:\/\/edukemy.com\/blog\/indias-economy-on-the-upswing-upsc-daily-editorial-analysis-20th-october-2023\/","title":{"rendered":"India\u2019s economy, on the upswing &#8211; UPSC Daily Editorial Analysis &#8211; 20th October 2023"},"content":{"rendered":"\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/edukemy.com\/upsc\/upsc-csat-test-series?utm_source=Blog&amp;utm_medium=Banner&amp;utm_campaign=CSAT+Test+Series\" target=\"_blank\" rel=\"noreferrer noopener\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1280\" height=\"300\" src=\"https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/06\/7.png\" alt=\"\" class=\"wp-image-42415\" srcset=\"https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/06\/7.png 1280w, https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/06\/7-1170x274.png 1170w, https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/06\/7-585x137.png 585w\" sizes=\"(max-width: 1280px) 100vw, 1280px\" \/><\/a><figcaption><a href=\"https:\/\/edukemy.com\/upsc\/upsc-csat-test-series\" target=\"_blank\" rel=\"noreferrer noopener\">UPSC CSAT Test Series<\/a><\/figcaption><\/figure>\n\n\n\n<p>India&#8217;s economy appears to be on an upward trajectory, marking a positive turn in its financial landscape. Several factors contribute to this optimistic outlook, including policy reforms, technological advancements, and global economic trends. The government&#8217;s efforts to streamline regulations and promote ease of doing business have created a more conducive environment for both domestic and international investors. Additionally, the country&#8217;s embrace of digital transformation has opened new avenues for growth, fostering innovation and efficiency. While challenges persist, such as income inequality and unemployment, the overall momentum suggests a promising future for India&#8217;s economic development. It is crucial for policymakers to continue fostering a balanced and inclusive growth agenda to ensure the benefits are shared across all segments of society.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_73 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<label for=\"ez-toc-cssicon-toggle-item-69fe63bff1eee\" class=\"ez-toc-cssicon-toggle-label\"><p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-cssicon\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69fe63bff1eee\"  \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/edukemy.com\/blog\/indias-economy-on-the-upswing-upsc-daily-editorial-analysis-20th-october-2023\/#Context\" title=\"Context\">Context<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/edukemy.com\/blog\/indias-economy-on-the-upswing-upsc-daily-editorial-analysis-20th-october-2023\/#Decoding_the_editorial_Status_of_Indian_economy\" title=\"Decoding the editorial: Status of Indian economy&nbsp;\">Decoding the editorial: Status of Indian economy&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/edukemy.com\/blog\/indias-economy-on-the-upswing-upsc-daily-editorial-analysis-20th-october-2023\/#The_reasons_for_optimism\" title=\"The reasons for optimism&nbsp;\">The reasons for optimism&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/edukemy.com\/blog\/indias-economy-on-the-upswing-upsc-daily-editorial-analysis-20th-october-2023\/#Frequently_Asked_Questions_FAQs\" title=\"Frequently Asked Questions (FAQs)\">Frequently Asked Questions (FAQs)<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/edukemy.com\/blog\/indias-economy-on-the-upswing-upsc-daily-editorial-analysis-20th-october-2023\/#Q_What_factors_contribute_to_the_upswing_in_Indias_economy\" title=\"Q: What factors contribute to the upswing in India&#8217;s economy?\">Q: What factors contribute to the upswing in India&#8217;s economy?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/edukemy.com\/blog\/indias-economy-on-the-upswing-upsc-daily-editorial-analysis-20th-october-2023\/#Q_How_has_digital_transformation_impacted_Indias_economic_growth\" title=\"Q: How has digital transformation impacted India&#8217;s economic growth?\">Q: How has digital transformation impacted India&#8217;s economic growth?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/edukemy.com\/blog\/indias-economy-on-the-upswing-upsc-daily-editorial-analysis-20th-october-2023\/#Q_What_challenges_does_Indias_economy_still_face_despite_the_positive_trends\" title=\"Q: What challenges does India&#8217;s economy still face despite the positive trends?\">Q: What challenges does India&#8217;s economy still face despite the positive trends?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/edukemy.com\/blog\/indias-economy-on-the-upswing-upsc-daily-editorial-analysis-20th-october-2023\/#Q_How_are_international_investors_responding_to_the_positive_economic_indicators_in_India\" title=\"Q: How are international investors responding to the positive economic indicators in India?\">Q: How are international investors responding to the positive economic indicators in India?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/edukemy.com\/blog\/indias-economy-on-the-upswing-upsc-daily-editorial-analysis-20th-october-2023\/#Q_What_measures_should_policymakers_take_to_sustain_and_enhance_the_current_economic_momentum\" title=\"Q: What measures should policymakers take to sustain and enhance the current economic momentum?\">Q: What measures should policymakers take to sustain and enhance the current economic momentum?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/edukemy.com\/blog\/indias-economy-on-the-upswing-upsc-daily-editorial-analysis-20th-october-2023\/#In_case_you_still_have_your_doubts_contact_us_on_9811333901\" title=\"In case you still have your doubts, contact us on 9811333901.&nbsp;\">In case you still have your doubts, contact us on 9811333901.&nbsp;<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/edukemy.com\/blog\/indias-economy-on-the-upswing-upsc-daily-editorial-analysis-20th-october-2023\/#Visit_our_YouTube_Channel_%E2%80%93_here\" title=\"Visit our YouTube Channel &#8211; here\">Visit our YouTube Channel &#8211; here<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Context\"><\/span><strong>Context<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>India is likely to grow at a faster-than-expected pace despite the conflict in West Asia <\/strong>due to the near normal monsoon, government\u2019s thrust on capital spending and increase in credible borrowing.&nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Decoding_the_editorial_Status_of_Indian_economy\"><\/span><strong>Decoding the editorial: Status of Indian economy<\/strong>&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\"><li>The International Monetary Fund has recently upgraded India\u2019s GDP growth forecast to 6.3 percent for 2023-24, up 40 basis points from its April forecast.&nbsp;&nbsp;<\/li><li>The RBI\u2019s forecast remains unchanged at 6.5 percent.&nbsp;&nbsp;<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_reasons_for_optimism\"><\/span><strong>The reasons for optimism<\/strong>&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>The monsoon:<\/strong>\u00a0<ul><li>While the overall rainfall was 6 percent below the expected during the monsoon season (due to 36 percent deficit rains in August), the spatial distribution is quite even.\u00a0\u00a0<\/li><li>Out of 36 states\/UTs, 29 received normal\/above-normal rains.\u00a0\u00a0<\/li><li>The SBI Monsoon Impact Index, which considers the spatial distribution, has a value of 89.5, faring much better than the full season index value of 60.2 in 2022.\u00a0<\/li><\/ul><\/li><li><strong>The thrust on capital expenditure continues:<\/strong>\u00a0<ul><li>During the first five months of the current year, the capital expenditure of the states as a percentage of the budgeted target is at 25 percent, while the Centre\u2019s is at 37 percent.\u00a0\u00a0<\/li><li>Nearly all states are on a spending spree, with Andhra Pradesh leading the pack, spending as much as 51 percent of the budgeted amount.\u00a0<\/li><\/ul><\/li><li><strong>The robust new companies\u2019 registration:<\/strong>\u00a0<ul><li>It depicts strong growth intentions.\u00a0\u00a0<\/li><li>Around 93,305 companies were registered in the first half of 2023-24 as compared to 59,241 five years back.\u00a0\u00a0<\/li><li>The average daily registration of new companies increased to 622 in 2023-24 (an increase of 58 per cent) from 395 in 2018-19.\u00a0<\/li><\/ul><\/li><li><strong>The continued traction in credit growth:<\/strong>\u00a0<ul><li>All scheduled commercial banks\u2019 (ASCB\u2019s) credit growth (year-on-year) has been accelerating since early 2022.\u00a0<\/li><li>If the 2023-24 trends are included, the incremental growth for the banking system for the current decade ending March 2024 could be close to 1.9 times higher than the last decade.\u00a0\u00a0<\/li><li>The ASCB data for the period 2000-2010 indicates that bank credit grew at an average of 1.86 times of nominal GDP growth, during a period of high growth. However, in 2010-2020, the relationship weakened, and credit to GDP growth declined to 0.99 times, largely because of the severe asset quality issues of banks post the 2008 global crisis. The relationship broke down during the pandemic years of 2020-21 and 2021-22 as DP contracted.\u00a0<\/li><li>In 2023-24, the credit to nominal GDP ratio may end up being around 1.7 times, up from 0.93 times in 2022-23, boosting the flow of funds to the broader economy, and helping to sustain the momentum.\u00a0<\/li><li>This incremental growth, even after accounting for the exceptional years of the Covid pandemic, is staggering.\u00a0<\/li><li>The <strong>driving force behind this credit growth is the rapid formalisation of the economy<\/strong> over the past decade.\u00a0\u00a0<\/li><li>Programmes like <strong>Jan Dhan Yojana<\/strong> allow banks to meet the demand for credit for households that were operating outside the formal banking sector.\u00a0<\/li><li>Doubts have been expressed about the jump in the outstanding credit card portfolio and the unsecured portfolio.\u00a0\u00a0<\/li><li>However, household debt as measured by credit card outstanding per credit card in India has been either static or declining both in nominal and real terms (after adjusted for CPI inflation) in 2023.\u00a0\u00a0<\/li><li>In fact, <strong>through<\/strong> <strong>schemes like PM SVANidhi, credible borrowers can have continued access to the financial system <\/strong>in the form of repeat loans, provided that they have a good credit repayment history.\u00a0<\/li><\/ul><\/li><\/ul>\n\n\n\n<p>If the banking sector\u2019s indicators are taken as a new normal, India is in for a sustained period of growth.&nbsp;<\/p>\n\n\n\n<p><a href=\"https:\/\/indianexpress.com\/article\/opinion\/columns\/indias-economy-on-the-upswing-8986350\/\" target=\"_blank\" rel=\"noreferrer noopener\">The Indian Express<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions_FAQs\"><\/span>Frequently Asked Questions (FAQs)<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Q_What_factors_contribute_to_the_upswing_in_Indias_economy\"><\/span><strong>Q: What factors contribute to the upswing in India&#8217;s economy?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>A: The upswing in India&#8217;s economy can be attributed to a combination of policy reforms, technological advancements, and favorable global economic trends. Government initiatives to streamline regulations and promote ease of doing business have played a crucial role in creating a positive environment for investors.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Q_How_has_digital_transformation_impacted_Indias_economic_growth\"><\/span><strong>Q: How has digital transformation impacted India&#8217;s economic growth?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>A: India&#8217;s embrace of digital transformation has opened new avenues for economic growth by fostering innovation and efficiency. The increased adoption of technology has not only improved business operations but has also created opportunities for new businesses and industries to thrive.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Q_What_challenges_does_Indias_economy_still_face_despite_the_positive_trends\"><\/span><strong>Q: What challenges does India&#8217;s economy still face despite the positive trends?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>A: Despite the upswing, challenges such as income inequality and unemployment persist. Addressing these issues remains a priority to ensure that the benefits of economic growth are shared across all segments of society.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Q_How_are_international_investors_responding_to_the_positive_economic_indicators_in_India\"><\/span><strong>Q: How are international investors responding to the positive economic indicators in India?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>A: Positive economic indicators and government initiatives have attracted increased interest from both domestic and international investors. The conducive business environment, coupled with a focus on ease of doing business, has contributed to a more favorable perception of India as an investment destination.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Q_What_measures_should_policymakers_take_to_sustain_and_enhance_the_current_economic_momentum\"><\/span><strong>Q: What measures should policymakers take to sustain and enhance the current economic momentum?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>A: Policymakers should continue fostering a balanced and inclusive growth agenda. This includes addressing challenges such as income inequality, promoting job creation, and ensuring that the benefits of economic development reach all sections of society. Additionally, ongoing efforts to streamline regulations and encourage innovation will play a crucial role in sustaining and enhancing the current economic momentum.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"In_case_you_still_have_your_doubts_contact_us_on_9811333901\"><\/span><strong>In case you still have your doubts, contact us on 9811333901.<\/strong>&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>For UPSC Prelims Resources,&nbsp;<a href=\"https:\/\/edukemy.com\/upsc-cse-prelims-resource-centre\" target=\"_blank\" rel=\"noreferrer noopener\">Click here<\/a><\/p>\n\n\n\n<p>For Daily Updates and Study Material:<\/p>\n\n\n\n<p>Join our Telegram Channel &#8211;&nbsp;<a href=\"https:\/\/t.me\/WithEdukemy4IAS\" target=\"_blank\" rel=\"noreferrer noopener\">Edukemy for IAS<\/a><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>1. Learn through Videos &#8211;&nbsp;<a href=\"https:\/\/bit.ly\/3vOD8sU\" target=\"_blank\" rel=\"noreferrer noopener\">here<\/a><\/li><li>2. Be Exam Ready by Practicing Daily MCQs &#8211;&nbsp;<a href=\"https:\/\/bit.ly\/3Q9z2nF\" target=\"_blank\" rel=\"noreferrer noopener\">here<\/a><\/li><li>3. Daily Newsletter &#8211; Get all your Current Affairs Covered &#8211;&nbsp;<a href=\"https:\/\/bit.ly\/3bE2y5J\" target=\"_blank\" rel=\"noreferrer noopener\">here<\/a><\/li><li>4. Mains Answer Writing Practice &#8211;&nbsp;<a href=\"https:\/\/bit.ly\/3mZuVxl\" target=\"_blank\" rel=\"noreferrer noopener\">here<\/a><\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Visit_our_YouTube_Channel_%E2%80%93_here\"><\/span><strong>Visit our YouTube Channel<\/strong> &#8211; <a href=\"https:\/\/www.youtube.com\/@ShabbirsEduKemyforIAS\" target=\"_blank\" rel=\"noreferrer noopener\">here<\/a><span class=\"ez-toc-section-end\"><\/span><\/h3>\n","protected":false},"excerpt":{"rendered":"<p>India&#8217;s economy appears to be on an upward trajectory, marking a positive turn in its financial landscape. Several factors contribute to this optimistic outlook<\/p>\n","protected":false},"author":17,"featured_media":15563,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_eb_attr":"","om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[352],"tags":[161,169,232,140],"class_list":["post-15560","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-editorial-analysis","tag-daily-current-affairs-upsc","tag-daily-editorial-analysis","tag-upsc","tag-upsc_preparation_strategy"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/posts\/15560","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/users\/17"}],"replies":[{"embeddable":true,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/comments?post=15560"}],"version-history":[{"count":2,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/posts\/15560\/revisions"}],"predecessor-version":[{"id":15567,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/posts\/15560\/revisions\/15567"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/media\/15563"}],"wp:attachment":[{"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/media?parent=15560"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/categories?post=15560"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/tags?post=15560"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}