The economic review states that uncertainty is increasing as the global trade situation changes due to increasing protectionism. In such a situation, India will need to increase business competition by reducing the cost to promote export competition and improve the convenience.
The report said, ‘There has been a significant change in global trade situation in recent years. Withdrawing from globalization, business protection is now increasing and uncertainty has also increased. In view of this, India needs a new strategic ground. It said, ‘A lot is yet to be done to increase business competition. The good news is that doing so is completely in our hands. For this, the industry will definitely have to continue investing on quality.
The report mentions that India’s foreign trade performance is better despite adverse land political conditions. The report said, “If you look at the capital front, there has been a pure positive capital flow in the economy.” Referring to the high growth rate in gross FDI flow, it has been said that in the first 8 months of FY 2025, the arrival has increased compared to the same period last year.
It said, ‘However, it has been curbed on pure FDI growth due to its return. There has been a fluctuations in the arrival of FDI during the first 9 months of FY 2025, which shows the mixed trends.
The review states that India’s foreign debt has been stable over the years. It states, ‘Stable foreign debt conditions have helped maintain the stability of the external sector. In such a situation it becomes more notable, when other countries of the world are affected by Bhurajnic instability. ‘The ratio of foreign debt and foreign exchange reserves has come down to 18.9 percent in the end of September 2024, which was 20.3 percent at the end of June 2024. .
The review also states that the actual effective exchange rate (Rir), which reveals the actual purchasing power of the currency, has increased from 103.2 in April 2024 to 107.2 in December 2024. The review said that in the first 5 months of FY 2025, there has been a slight decline of 2.9 percent in the rupee and which has performed better than other currencies such as Canada’s dollar, South Korea’s Von and Brazil’s reel, in which during this period There has been a decline of 5.4 percent, 8.2 percent and 17.4 percent respectively.
It said, “One of the primary reasons for the fall in rupee in 2024 is that the dollar has strengthened due to geographical tensions in West Asia and uncertainty about election results in the US.” In September 2024, India’s foreign exchange reserves were around 90 percent of its total $ 711.8 billion loans. The report states that it is a strong reserves regarding external instability.