A Health Check of India’s Economy

The video discusses the ongoing trade deficit, highlighting a consistent 15 billion mark over several months. It examines the contraction in non-gold imports, indicating a domestic demand slowdown, and links this to global economic trends. The fiscal policy is critiqued for being pro-cyclical, with a focus on revenue expenditure, while maintaining financial stability. The video also explores monetary policy, noting past rate cuts and potential future actions by the RBI, given the benign inflation and growth concerns.

What has been the trend in the trade deficit over the past four months?

• It has been increasing steadily.

• It has remained around the 15 billion mark.

• It has fluctuated unpredictably.

• It has decreased significantly.

What is a significant factor contributing to the domestic economic slowdown?

• Contraction in non-gold imports

• Rise in core inflation

• Increase in gold imports

• Surge in oil prices

How is the budget described in terms of its economic cycle impact?

• Neutral

• Anti-cyclical

• Pro-cyclical

• Counter-cyclical

What was the focus of the budget's expenditure side?

• Infrastructure development

• Revenue expenditure, especially in agriculture and rural areas

• Defense spending

• Urban development

What is the current stance of the RBI regarding rate cuts?

• No further rate cuts are expected.

• Rate cuts are contingent on economic data.

• Rate cuts are being reversed.

• Rate cuts are unlikely due to high inflation.