01-02-23 Daily-Haryana-HPSC Current Affairs

The state government this year claimed to have given thrust to the growth of the agriculture sector to fulfil its promise to double the income of farmers. However, farmers continued to struggle with the issues of profitable minimum support price (MSP), adequate compensation for crop damage and draining out standing water etc.

The farmers were also not able to venture out of the wheat-paddy cycle to adopt innovative farming in an attempt to supplement their income.

An important contributor to the Gross State Domestic Product (GSDP), the government had also proposed a budgetary allocation of Rs 5988.76 crore to the agriculture and allied sectors, an increase of 27.7 per cent in this years budget in March.

The Economic Survey Report of the Haryana Government indicated the importance of agriculture in Haryana when it stated, Though the economic growth of the state has become more dependent on the growth in industry and services sectors during the past few years, the recent experience suggests that high Gross State Value Added (GSVA) growth without sustained and rapid agricultural growth was likely to accelerate inflation in the state, jeopardising the larger growth process. The ESR stated that as per the advance estimates for 2021-22, the GSVA from the agriculture sector had a growth of 2.6 per cent.

The Economic Survey is an annual report card of the economy, which is presented a day before the budget and examines the performance of each and every sector and then suggests future moves.

India’s economy to grow 6.5% in 2023-24, compared to 7% this fiscal and 8.7% in 2021-22. Gross domestic product (GDP) in nominal terms to be 11% in next fiscal

Growth driven by private consumption, higher capex, strengthening corporate balance sheet, credit growth to small businesses and return of migrant workers to cities

Real GDP growth to be in the range of 6-6.8% next fiscal depending on global economic, political developments

Challenge to rupee depreciation persists with the likelihood of further interest rate hikes by the US Fed

Current account deficit (CAD) may continue to widen as global commodity prices remain elevated, economic growth momentum stays strong. If CAD widens further, rupee may come under depreciation pressure

The country’s current account deficit widened to 4.4% of the GDP in the quarter ending September, from 2.2% of the GDP during the April-June period due to a higher trade gap, according to the latest Reserve Bank of India (RBI) data.

India has sufficient forex reserves to finance CAD and intervene in forex market to manage rupee volatility

The growth in exports has moderated in second half of current fiscal; the surge in growth rate in 2021-22 and first half of current fiscal led to production processes shifting gears from ‘mild acceleration’ to ‘cruise mode’

Slowing world growth, shrinking global trade led to loss of export stimulus in the second half of current year

Bank credit growth likely to be brisk in FY24 on back of benign inflation, moderate credit cost

Credit growth to small businesses high at over 30.5% in January-November, 2022

Central govt capex grew 63.4% in April-November of current fiscal

Stock market gave positive returns in calendar year 2022 unfazed by FPI withdrawal

Private consumption, capital formation led economic growth in current fiscal has helped generate employment; urban employment rate declined, while Employee Provident Fund registration rose

The Survey said that ‘entrenched inflation’ may prolong the tightening cycle and therefore borrowing costs may stay higher for longer

The joint exercise, which will go through January 26th, intends to encourage international collaboration in air defence.

Four Su-30 MKI, two C-17, and one IL-78 aircraft from the Indian contingent will take part in the air exercise, while four F-2 and four F-15 aircraft from the JASDF will take part.

According to a statement from the Ministry of Defence, the first exercise would involve several aerial combat drills between the two Air Forces.

Theyll engage in sophisticated multi-domain air combat operations while exchanging best practises.