Page 30 - Policy Economic Report_Mar'25

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

Special Drawing Rights (SDRs) dipped by $86 million, now totaling $18.3 billion, while the reserve
position in the International Monetary Fund (IMF) contracted by $20 million, now standing at $4.3
billion.

September
ADB retains India’s GDP growth projection for FY25 at 7%
The Asian Development Bank (ADB) retained its projection on India’s GDP growth for the current
financial year at 7% and for 2025-26 at 7.2% and said geopolitical shocks that could disrupt global supply
chains and commodity prices pose near-term risks. According to ADB, agricultural improvements will
enhance rural spending, which will complement the effects of robust performance of the industry and
services sectors. ADB has pegged retail inflation for the current financial year at 4.7%. It said the food
prices are likely to remain elevated despite higher agriculture output expectations.

August
Net FDI in India more than doubles in Apr-Aug 2024- RBI

Net Foreign Direct Investment (FDI) in India i.e. inflows minus outflows—more than doubled in April–
August this year to $6.62 billion from $3.26 billion in the same period last year. Gross inward FDI during
April–August 2024 increased to $36.1 billion from $27.4 billion a year ago, according to the Reserve
Bank of India’s data. Repatriation/disinvestment by those who made direct investments in India rose to
$20.76 billion in the five months of FY25, up from $18.88 billion in April–August 2023. Around two-thirds
of the gross FDI inflows were directed towards manufacturing, financial services, communication
services, and electricity and other energy sectors. About three-fourths of the flows were sourced from
Singapore, Mauritius, the UAE, the Netherlands, and the US.

India’s inflation falls below RBI’s monetary target

India's retail inflation in August 2024 falls below the RBI's 4% target for the second time in about five
years. India's retail inflation was 3.65% in August 2024, according to the All-India Consumer Price Index
(CPI) data released on September 12, 2024. The combined inflation (rural and urban) fell to 3.65% in
August 2024, compared to 6.83% in August 2023. However, it has increased by 110 basis points when
compared to the previous month's 3.54%. This was the second time in nearly five years that overall
retail inflation fell below the Reserve Bank of India's 4% inflation target. The last time was July 2024.
Urban inflation fell to 3.14% in August 2024, compared to 6.59% in August 2023. Rural inflation fell to
4.16% in August 2024, compared to 7.02% in August 2023.

July
Union Budget 2024-25

The Union Minister of Finance and Corporate Affairs Smt. Nirmala Sitharaman presented the Union
Budget 2024-25 in Parliament on 23rd July 2024. The focus of budget is on employment, skilling, MSMEs,
and the middle class. Nine Budget Priorities in pursuit of ‘Viksit Bharat’:

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