Big news brought to India's economy, foreign investment remained at the top

There is big news for India on the economy front. The country's foreign exchange reserves have crossed its all-time high. Along with this, the country's industrial production has also increased. According to government data, India's industrial production grew by 5.9 percent in May this year, mainly due to better performance of the mining and power sectors.

Factory production, measured in terms of the Index of Industrial Production (IIP), grew by 5.7 percent in May 2023. According to the data, the growth rate of mining, manufacturing and electricity in May 2024 has been 6.6 percent, 4.6 percent and 13.7 percent respectively. Which will be 6.3 and 0.9 percent respectively. The capital goods segment grew by 2.5 percent in May, but it grew by 8.1 percent in the same month last year.

The production of consumer durables rose 12.3 percent in May, compared to a marginal increase of 1.5 percent in 2023. The production of consumer non-durable goods increased by 2.3 percent, following an increase of 8.9 percent in May 2023. Infrastructure and construction-related goods saw a modest growth of 6.9 percent in May 2024, compared to a year-on-year growth of 13.0 percent.

The data also showed that production of primary goods grew by 7.3 percent in May 2024 as against 3.6 percent in the same period last year.

RBI informed

India's foreign exchange reserves increased by $5.158 billion to $657.155 billion during the week ended July 5, the Reserve Bank of India (RBI) said. Foreign exchange reserves declined for the last two consecutive weeks, falling by $1.713 billion to $651.997 billion in the week ended June 28. On June 7 this year, reserves reached an all-time high of $655.817 billion.

Gold hoarding also increased

According to an RBI report, foreign currency assets, a major component of reserves, rose by $4.228 billion to $577.11 billion in the week ended July 5. RBI said gold reserves increased by $904 million to $57.432 billion during the week. Data showed that India's reserve position with the IMF increased by $4 million to $4.578 billion in the week under review.