India’s Economy in July 2024: Strong Amid Global Headwinds

Introduction

Despite a looming global recession, the Indian economy has demonstrated remarkable resilience in July 2024. The IMF raised India’s growth projection to 6.9%, ahead of China.

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Key Drivers of Growth

• Robust Exports: Pharma and IT services led the way.

• Digital Infrastructure: UPI crossed 15 billion transactions in June alone.

• Manufacturing Push: PLI schemes delivered results.

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Inflation and Monetary Policy

The Reserve Bank of India held repo rates steady at 6.5%, citing inflation control and a focus on growth.

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Job Market Overview

Urban employment rose by 1.2% while rural jobs remained steady due to a good monsoon forecast.

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Foreign Investment

India attracted over $10 billion in FDI in Q2 2024, mainly from tech and renewable energy sectors.

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Sector-Wise Performance

• Automobiles: EV sales up by 25% YoY.

• Telecom: 5G coverage reached 80% of the population.

• Agriculture: MSP reforms under review.

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Challenges Ahead

• Rising oil prices

• Global supply chain risks

• Geopolitical tensions with China

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Conclusion

India's economy in mid-2024 paints a picture of cautious optimism, with robust fundamentals and smart policies driving its resilience.