Monsoon is above normal in Karnataka and Tamil nadu this year upto 17th July

 The performance of the monsoon in India so far in 2024 has been mixed, but overall positive with only (-)3% deficient so far from LPA(Long Period Average). In Karnataka and TN rains are above normal at 15% approx excess in Karnataka and 88% above normal approx  in TN upto 17th July

Positive Aspects:

• Above-Normal Rainfall: The India Meteorological Department (IMD) predicted above-normal rainfall for the 2024 monsoon season, with 106% of the Long Period Average (LPA) expected. This has largely held true in many regions.
• Timely Onset: The southwest monsoon made a timely onset over Kerala and progressed well initially, bringing much-needed relief from the summer heatwave.
• Beneficial for Agriculture: Adequate rainfall is crucial for agriculture, which is a significant contributor to the Indian economy. A good monsoon season can boost agricultural output and overall economic growth.

Areas of Concern:

• Uneven Distribution: The distribution of rainfall has been uneven across different regions of India. Some areas have received excess rainfall, leading to floods and related issues, while others have experienced deficient rainfall.
• Delayed Progress in Some Regions: The monsoon's progress has been somewhat delayed in certain regions, leading to concerns about potential droughts and water shortages.

Overall, while the monsoon performance in 2024 has been largely positive, the uneven distribution and delayed progress in some regions raise concerns that need to be monitored closely. The IMD will continue to provide updates and forecasts throughout the season.

Additional Information:

• The southwest monsoon season in India typically lasts from June to September.
• The performance of the monsoon is crucial for agriculture, water resources, and overall economic activity in India.
• You can find more information about the monsoon's progress and forecasts on the IMD website: https://mausam.imd.gov.in/

India's Growth Forecast: A Positive Outlook Supported by Recent Indicators

India's Growth Forecast: A Positive Outlook Supported by Recent Indicators

Several key economic indicators for June 2024 suggest a positive growth trajectory for India:

1. GST Collection: The 7.7% year-on-year growth in GST collection signals a significant increase in economic activity. This rise indicates higher consumer spending and business transactions, reflecting a robust domestic demand.

2. Manufacturing PMI: The PMI reading of 58.3 signifies a strong expansion in the manufacturing sector. This figure indicates increased production and new orders, suggesting a healthy growth momentum in the industrial sector.

3. IIP Growth: The Index of Industrial Production (IIP) growth for April 2024 was 5%, exceeding market expectations. This indicates a broad-based recovery across various industrial sectors, contributing to overall economic growth.

4. Core Sector Growth: While core sector growth slightly slowed to 6.3% in May 2024, it still remains at a healthy level. The core sectors, accounting for over 40% of the IIP, continue to play a significant role in driving industrial output and overall economic growth.

Based on these indicators, India's growth forecast for the fiscal year 2024-25 appears promising. While there may be some challenges, such as global economic uncertainties and potential inflationary pressures, the strong domestic demand, robust manufacturing activity, and positive export performance are expected to drive economic growth in the coming months.

However, it's important to monitor these indicators closely and analyze other relevant data to get a comprehensive picture of the evolving economic landscape and adjust the growth forecast accordingly. Recent data on exports, current account surplus, and forex reserves for June 2024 also indicate a robust growth trajectory for the Indian economy on the external front:

1. Exports: Merchandise exports for May 2024 showed a healthy growth of 12.51%, reaching USD 38.94 billion. This growth was driven by strong demand for engineering goods, petroleum products, and gems and jewelry. For Q1 2024, overall exports grew by 10.3% YoY, indicating a sustained positive trend in international trade.

2. Current Account Surplus: India recorded a current account surplus of 0.6% of GDP in Q4 FY24, the first surplus since Q4 FY21. This surplus was primarily due to higher services exports and remittances, showcasing a strong performance in the services sector and improved external balance.

3. Forex Reserves: India's foreign exchange reserves reached a record high of $654 billion by the end of June 2024. This increase was mainly due to robust capital inflows, higher services exports, and a narrowing current account deficit. Strong forex reserves provide a buffer against external shocks and bolster investor confidence.

Together, these figures suggest a resilient and competitive Indian economy on the global stage. The growth in exports reflects the increasing demand for Indian goods and services in international markets, while the current account surplus and rising forex reserves demonstrate a healthy external balance and strong financial position.

These positive developments on the external front, combined with the robust domestic indicators mentioned earlier, paint a promising picture for India's economic growth in the coming months. While global uncertainties persist, the Indian economy appears well-positioned to navigate challenges and sustain its growth momentum.

Some reforms which Modi Government can look at!

 1) the new Central Govt should look at the possibility of creating a "Stock Options scheme exclusively for BPL/Unorganised sector families" of a basket of Top 500 NSE/BSE cos.which can b used to distribute Stock Market wealth to these poor, through their contribution and a matching contribution by Govt.

2)Already inflation is the biggest Tax.On top of it Salaried Middle class regularly pay Tax .Diminishing marginal utility of income theory suggests that value for money for them is high and By paying Income tax upfront thro TDS before even their Salaries r credited to their accounts, it is the Salaried middle class that bears the onslaught of Tax increases with diminishing income values due to inflation.Through their Taxes they support both Big Farmers , Wealthy Politicians and Businessmen.

3)When Supply side is adequate thro free imports, only cost-push inflation can happen,and it has receded once commodity prices have come down.

4)In the present NPS, many retired r saying the pension income is not 50% of last drawn salary, it also fluctuates and there is no revision considering cost of inflation.If these r addressed thro proper restructuring of NPS,that should be acceptable to retirees.

5) Judicial reforms especially number of adjournments should be strictly restricted with relaxations to be made available only by Chief Justices of the respective Courts.

6)All Ministers in Centre and State Govts, MPs,MLAs,MLCs and other PEPs and their immediate relatives should compulsorily take treatments only in Government Hospitals and their Children must study only in Government Schools.