The Reserve Bank of India had trimmed its FY2024 GDP growth forecast to 5.5% from an earlier estimate of 6.5%.
This downward revision is due to slowing demand, inflation which continues to be high, and geopolitical tensions that have affected global trade.
The central bank said that CPI inflation for FY2024 was projected at 5.2%.
The negative GDP revision reflects caution as export and investment growth drivers are expected to be underperformers in the short term.
Government Approves ₹10,000 Crore for National Infrastructure Pipeline
The cabinet has sanctioned ₹10,000 crore to fund growth and employment by upgrading the National Infrastructure Pipeline.
Infrastructure regarding transport, housing, urban development, and energy sectors is proposed to be upgraded throughout India.
It aims to attract private investments for sustainable development.
The target for the government is completing the infrastructure by 2025. NIP, as such, will play a crucial role in the development in the future.
Launch of the PM-GatiShakti National Master Plan
The Prime Minister initiated the PM-GatiShakti Master Plan for integrating all 16 key ministries to work towards improving the coordination and implementation of projects with the help of one national database.
This will allow the speedy clearances of projects along with improved logistics performance in this digital platform.
The initiative is expected to reduce delays in infrastructure development, thereby improving the ease of doing business and contributing to GDP growth.
The initiative will cover key sectors like roadways, railways, ports, and airports to streamline India’s connectivity framework.
India’s Forest Cover Increases by 1,000 sq km: Forest Survey of India
India’s total forest cover increased by 1,000 square kilometers in the past year, according to the latest report from the Forest Survey of India (FSI).
Mostly due to afforestation efforts and improvement of existing forest cover.
Percentage of total geographical area covered with forest is 24.56 % – significant growth in northeastern states.
This FSI report emphasizes biodiversity conservation, thereby emphasizing the sustainable management of forests.
India’s Role in the Global Climate Summit
India emphasized its commitment to reduce carbon emissions and meet net-zero targets by 2070 during the recent Global Climate Summit.
Prime Minister Modi declared new targets for renewable energy. He committed to scaling up solar energy capacity to 500 GW by 2030.
The country will also be investing heavily in green hydrogen technologies and energy-efficient solutions for industrial sectors.
India’s stand was well-received as it highlights the role of developing nations in climate action despite economic challenges.
Cabinet Approves Amendments to Labour Laws
The Union Cabinet has approved amendments to the existing Labour Laws, aiming to ensure better work conditions, higher minimum wages, and social security benefits for workers.
The amendments also focus on ease of compliance for businesses, especially in the MSME sector.
This is part of the government’s efforts at improving India’s ranking across the globe in ease of doing business and attracting foreign investments.
Some of the key changes are that the reform has included the benefits to gig workers and better dispute resolution mechanisms.
India Signs Defence Pact with US to Enhance Military Cooperation
India and the United States have signed a major defence cooperation pact with an aim at improving military coordination and defense technologies.
The pact entails joint training programs, sharing of intelligence, and interoperability in military operations.
The agreement is considered a strategic approach to counter the increasing military influence in the Indo-Pacific region, especially the growing presence of China.
The pact will also witness the upscaling of joint military exercises and high-tech exchanges between both countries.
New Education Policy to Strengthen Vocational Training
The Ministry of Education has announced a new framework to be used in the schools and colleges to enhance vocational education and training.
The focus will be on skilling students for manufacturing, information technology, and health services industries.
The policy aims at aligning vocational programs with industry needs and enhancing employability among youth.
The new policy also focuses on partnerships with industries for the purpose of giving students on-the-job training and apprenticeships.
Key Concepts and Policies
National Infrastructure Pipeline (NIP): Government initiative to improve the infrastructure of India in transport, housing, and urban development, with a lot of private investments.
PM-GatiShakti: A digital platform integrating some key ministries to enhance the coordination of projects, to reduce delays, and also to improve logistics infrastructure of India.
Forest Survey of India (FSI): Annual report for tracking forest cover and biodiversity in India that helps in planning afforestation and conservation programs.
Green Hydrogen Technologies: This is a production of hydrogen using renewable sources of energy, considered as the only way to reduce net-zero emissions.
Amendments in Labour Law: Reforms in Indian Labour Laws regarding fair wages, better working conditions, social security, and so forth, for gig workers
Defence Cooperation Pact with the US: A defense agreement on boosting military cooperation and countering regional security challenges, mainly from China.
