The year 2024 ended with market turmoil and disappointment. India’s retreat on various economic fronts during this year is a matter of concern. Decline in foreign reserves, increase in imports as compared to exports, fall of rupee and performance of stock markets have raised concerns.
The depletion of foreign exchange reserves and the devaluation of the rupee against the dollar are a serious concern for economic growth. There has been no increase in people’s income for a long time. In comparison, inflation has increased significantly. Obviously, this has led to a decline in consumer spending. In such a situation, the gross domestic product (GDP) rate has naturally gone down, a market expert said in a report. The exchange rate of rupee against the dollar has been in a declining trend for a long time. Now foreign exchange reserves have also started decreasing rapidly. On Friday last week, the value of food was recorded at $8.48 billion. This is the biggest decline since 2008. Last week also a deficit of $1.99 billion was recorded. Foreign exchange reserves rose to an all-time high of $704.88 billion in September. But since then there has been a continuous decline. Now the foreign exchange reserves have reduced to 644.87 billion dollars. However, this level cannot be considered worrying at present. But the way it is continuously declining is a matter of concern for the economy. Decrease in foreign reserves means that expected foreign investment is not coming. The reason is also clear. The US dollar is continuously strengthening. Due to which foreign investors have started withdrawing their investments from India.
India’s food trade is also continuously growing. Despite the emphasis on exports, there are no signs of improvement. Imports are continuously increasing. Its direct impact is on local production and market. The manufacturing sector has declined in the last few quarters. Industrial production has declined in all important sectors.
