March 2025 – Page 5

India’s economy grew by 6.2% in real terms during the October-December quarter of 2024-25

01/03/2025

India’s economy grew by 6.2% in real terms during the October-December quarter of 2024-25, according to official data released on 28 February 2025. This growth was higher than the 5.6% recorded in the previous quarter but below the 6.8% forecast by the Reserve Bank of India (RBI). The weaker-than-expected growth is attributed to sluggish consumption and stock market performance.

The RBI’s GDP growth projection for 2024-25 is 6.6%, with the economy expected to grow by 7.2% in the January-March quarter. India’s real GDP growth for 2024-25 is estimated at 6.5%, lower than the 8.2% growth in 2023-24. Nominal GDP is projected to grow at 9.7% in 2024-25.

India remained the fastest-growing major economy, with 8.2% growth in 2023-24, following 7.2% in 2022-23 and 8.7% in 2021-22. The World Bank emphasized the need for 7.8% average growth over the next 22 years for India to become a developed nation by 2047, requiring bold reforms and effective execution.

Sensex Crashes 1,414 points, Amid Global Trade Tensions

01/03/2025

The Indian stock market experienced a sharp decline on February 28, 2025, due to weak global cues and escalating trade tensions. The Sensex plunged 1,414 points (1.9%) to close at 73,198, marking a monthly loss of 4,303 points (5.6%) and a 15% drop from its all-time high. Similarly, the Nifty 50 fell 420 points (1.86%) to settle at 22,125, recording a 5.9% decline in February and a 16% drop from its peak.

The downturn followed U.S. President Donald Trump’s announcement of tariffs on Canada, Mexico (starting March 4), and an additional 10% on China, triggering fears of a global trade war. The sell-off was broad-based, with all sectoral indices closing in the red. IndusInd Bank (-7%) led the losses, followed by Tech Mahindra, Tata Motors, Infosys, and Nestle India (-4% to -6%). Only HDFC Bank (+2%) managed to gain.

IT and auto stocks suffered the most, falling 4% each, while FMCG, healthcare, and capital goods declined over 2%. The BSE MidCap and SmallCap indices dropped over 2%, with the SmallCap index recording its steepest monthly fall in five years.

Investor sentiment remained highly negative, with 3,248 stocks declining out of 4,081 traded, and 476 hitting lower circuit limits. Analysts predict Nifty support at 21,800-22,000, with further downside risks if breached.

Trump-Zelenskiy Clash at White House: U.S. Support for Ukraine in Jeopardy

01/03/2025

On February 28, 2025, Ukrainian President Volodymyr Zelenskiy and U.S. President Donald Trump clashed publicly at the White House over Ukraine’s war with Russia. Zelenskiy sought U.S. support, but Trump and Vice President JD Vance pushed for diplomacy, with Trump accusing Zelenskiy of disrespecting the U.S. and being unwilling to make peace.

Trump threatened to withdraw U.S. support unless Ukraine negotiated with Russia, telling Zelenskiy, “You don’t have the cards.” Zelenskiy refused to compromise with “a killer” like Putin, while Vance criticized him for not showing gratitude.

A natural resources deal between Ukraine and the U.S. was left unsigned. The agreement would have given the U.S. access to Ukraine’s mineral wealth but lacked security guarantees, disappointing Kyiv. Trump argued that U.S. business presence would serve as a guarantee.

Trump’s shift away from European security commitments has alarmed Kyiv and its allies, raising fears that Ukraine could be forced into a Russia-favored peace deal. Trump, aiming to end the war and improve U.S.-Russia relations, criticized Zelenskiy’s leadership, calling him a “dictator.”