Page 14 - Policy Economic Report - November 2024

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

Key ILO recommendations include:
• Setting wages through social dialogue: wages should be set and adjusted through collective
bargaining or agreed minimum wage systems involving governments, workers, and employers.

• Taking an informed approach: wage-setting should consider both the needs of workers and their
families and economic factors.

• Promoting equality, and equal opportunity of treatment and outcomes: wage policies should
support gender equality, equity, and non-discrimination.

• Addressing root causes of low pay: national policies should reflect each country’s specific context
and address the causes of low pay such as informality, low productivity.

6. Indian Economy

India’s economic growth

According to data released by the National Statistics Office on 29th November, 2024, India's economic
growth slowed to 5.4 per cent in Q2FY25, showing a significant decline from 8.1 per cent during the same
period last year. The country's growth projection was 6.7 per cent in the first quarter of this financial year.

Real Gross Value Added (GVA), a core measure of economic activity, expanded by 5.6% in Q2 FY25, a
slowdown from 7.7% in the corresponding period last year. Nominal GVA growth also eased to 8.1%
compared to 9.3% in the same period last fiscal.

The key highlights related to sectoral performance is given below: -

• The agriculture and allied sector have bounced back by registering a growth rate of 3.5 per cent
in Q2 of FY25 after sub-optimal growth rates ranging from 0.4 per cent to 2.0 per cent, observed
during previous four quarters.

• Manufacturing grew at a sluggish 2.2%, while mining and quarrying contracted by 0.1%.
Sustained domestic steel consumption drove growth in the construction sector to 7.7% in Q2.

• The services sector posted a robust 7.1% growth, with the trade, hotels, and transport segments
registering 6.0% growth.

• Private Final Consumption Expenditure (PFCE), a key GDP driver, grew by 6.0% in Q2, up from
2.6% in the same period last year.

• Government Final Consumption Expenditure (GFCE) saw a recovery, expanding by 4.4% after
several quarters of negative or minimal growth.

• The RBI has maintained its GDP growth projection for FY25 at 7.2%, down from 8.2% last fiscal. Its
Monetary Policy Committee kept the benchmark repo rate unchanged at 6.50%, signaling a
cautious approach amid persistent inflation.

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