Hindi English Translation || Editorial || ​Losing momentum: On slowing consumption demand

​Losing momentum: On slowing consumption demand

GST receipts and other recent indicators suggest (सुझाव देना) consumption is still a concern

Several economic indicators (सूचक, संकेतक) released over the past week are bad news for the Finance Ministry and Reserve Bank of India’s hopes of a growth rebound (recovery, revival, rallying, picking up, coming back (in value of something after decline)) in the second half of 2024-25 — at least for the October-December quarter (तिमाही). While GDP (सकल घरेलू उत्पाद) growth slipping (फिसलना) to 5.4% in the second quarter was termed a transient (temporary, short-term, short-lived, momentary, passing, unstable, impermanent, fleeting, brief) blip, policymakers have acknowledged (स्वीकार करना) slowing consumption demand (उपभोग मांग) led by restrained (नियंत्रित, संयमित) spending trends in urban India. They have also exuded (send out, issue, give out, release, exhibit, show, display (an emotion or quality)) optimism (आशावाद) about a festive (उत्सवपूर्ण) boost from cities along with a resilient (मजबूत, लचीला) rural demand outlook (दृष्टिकोण, संभावनाएं) lifting (बढ़ाना, उठाना) the momentum (गति, प्रगति). The latest data points are also important as they are part of the final gauges (measure, indicator, index) for the Finance Ministry to assess before it finalises its economic blueprint (model, plan, guide, template, framework) for 2025-26 in the February 1 Union Budget. Bank credit growth (ऋण वृद्धि) has slowed for the fifth straight month in November, while core infrastructure (the basic physical or organisational structure or framework that a country or organization needs in order to function properly. For a whole nation, it includes all the physical systems such as buildings, roads & railways networks, utilities, etc) sectors — about 40% of industrial output — expanded at a four-month high pace (speed, rate) of 4.3%. However, production levels were 3.3% below October with six of eight sectors operating at lower capacities. The Purchasing Managers’ Index (Purchasing Managers’ Index or PMI is an economic indicator, which is derived after monthly surveys of different companies. The index shows trends in both the manufacturing and services sector. The index helps in determining whether the market conditions, as seen by purchasing managers, is expanding, contracting or staying the same. It is used to provide information regarding the current and future business conditions) shows factory activity levels through November and December were the worst through 2024, even as input cost inflation (simply meaning “cost of living”; increase of price level of goods & services and vice versa decrease of currency value) spurred price hikes that would hit (affect badly, damage, ruin) demand somewhat over time.

The Goods and Services Tax (GST) receipts (proceeds, profits, earnings, returns, income, revenue, gain, yield, turn over) for December, based on transactions concluded in November, do not have much succour ((financial) help, aid, assistance, relief) to offer either, especially on the consumption engine of the economy. Gross (total, complete, entire, overall, full, aggregate) revenues were at a three-month low of almost ₹1.77 lakh crore, and just 7.3% higher than last year, marking (indicate, represent, signify) the joint-second slowest uptick (a small increase or upward trend) in three and a half years. December’s revenues, in fact (actually, really, in reality), mark the fourth straight month of below-10% growth, with the pace decelerating (slow down, reduce, lessen, slow up) every passing month, and the year-to-date (referring to the period from the beginning of the current year to a specified date before the year’s end) rise in revenues is now just 8.6%, making the 11% growth estimate in the Budget a tall task (very difficult task; tall order) to catch up (reach, gain on, come to, succeed in reaching (the same standard, stage, or level of others)) with in the final quarter. Net revenues after refunds were just 3.3%, the slowest this fiscal (financial year), although this may partly be explained by high refund payouts (payment) in December. Revenue growth (the increase in a company’s total revenue or income over a specific period, typically calculated quarterly/annually) from domestic transactions slowed to 8.4%, while import revenues grew just 3.9% — the former may perhaps (maybe, possibly) be linked to tighter retail credit flows (the availability of credit/loan) and a post-Deepavali spending pullback (a reduction in demand), but the latter is a tad (a small amount of something) puzzling (perplexing, mystifying, bewildering) as November’s goods import bill had shot up 27% to a record high of $70 billion. The poor revenue growth rates for major consumer States such as Uttar Pradesh (1%) and Gujarat (4%), and the persistent (continuous, constant, unending, unrelenting, unceasing) contraction (In economics, it refers to a decline in national output as measured by gross domestic product) in Andhra Pradesh and a few northeastern States (including Manipur), also need closer scrutiny (examination, inspection, investigation). For the Budget’s formulation, the Centre would do well to try to understand and address (tackle, deal with, attend to, try to sort out) the pain points (pain spot; a continuing/persistent problem) afflicting (trouble, bother, burden, distress, cause suffering to, beset, worry) consumption, including high inflation.

Courtesy: The Hindu

Important Word List With Meaning

1.momentum (noun)

Hindi Meaning - गति, प्रगति
English Meaning - the increase in the rate of growth of something; strength, impetus.

2.consumption demand (noun)

Hindi Meaning - उपभोग मांग
English Meaning - It represents the demand for goods and services by individuals and households in the economy.

3.indicator (noun)

Hindi Meaning - सूचक, संकेतक
English Meaning - measure, index, indicator, criterion, barometer, gauge, point of reference.

4.suggest (verb)

Hindi Meaning - सुझाव देना
English Meaning - indicate, denote, point to, signify.

5.quarter (noun)

Hindi Meaning - तिमाही
English Meaning - a period of three months (considered as one-fourth of a year).

6.Gross domestic product (GDP) (noun)

Hindi Meaning - सकल घरेलू उत्पाद
English Meaning - a measure of economic activity in a country. the total value of all final goods and services produced within the country in one financial year.

7.slip (verb)

Hindi Meaning - फिसलना
English Meaning - slide, fall, drop, decrease, slump.

8.acknowledge (verb)

Hindi Meaning - स्वीकार करना
English Meaning - accept, recognize, realize.

9.restrained (adjective)

Hindi Meaning - नियंत्रित, संयमित
English Meaning - self-controlled, controlled, self-restrained, moderate, thoughtful.

10.optimism (noun)

Hindi Meaning - आशावाद
English Meaning - hopefulness, hope, confidence, positive attitude, buoyancy.

11.festive (adjective)

Hindi Meaning - उत्सवपूर्ण
English Meaning - relating to a festival.

12.resilient (adjective)

Hindi Meaning - मजबूत, लचीला
English Meaning - strong, sturdy, stout/well built, durable.

13.outlook (noun)

Hindi Meaning - दृष्टिकोण, संभावनाएं
English Meaning - prospects, chances, possibilities, expectations, future.

14.lift (verb)

Hindi Meaning - बढ़ाना, उठाना
English Meaning - increase, raise, boost, pick up.

15.credit growth (noun)

Hindi Meaning - ऋण वृद्धि
English Meaning - credit offtake; it refers to the growth/increase in the amount of credit that banks lend to the companies, individuals, etc.

16.receipts (noun)

English Meaning - proceeds, profits, earnings, returns, income, revenue, gain, yield, turn over.

17.rebound (noun)

English Meaning - recovery, revival, rallying, picking up, coming back (in value of something after decline).

18.transient (adjective)

English Meaning - temporary, short-term, short-lived, momentary, passing, unstable, impermanent, fleeting, brief.

19.blip (noun)

English Meaning - a minor, temporary change in something normal; a sudden, brief deviation from a regular trend.

20.exude (verb)

English Meaning - send out, issue, give out, release, exhibit, show, display (an emotion or quality).

21.gauge (noun)

English Meaning - measure, indicator, index.

22.blueprint (noun)

English Meaning - model, plan, guide, template, framework.

23.core sectors/industries (noun)

English Meaning - the eight industries comprising electricity, steel, refinery products, crude oil, coal, cement, natural gas and fertilizers are classified as core sector industries.

24.infrastructure (noun)

English Meaning - the basic physical or organisational structure or framework that a country or organization needs in order to function properly. For a whole nation, it includes all the physical systems such as buildings, roads & railways networks, utilities, etc.

25.pace (noun)

English Meaning - speed, rate.

26.Purchasing Managers’ Index (PMI) (noun)

English Meaning - Purchasing Managers’ Index or PMI is an economic indicator, which is derived after monthly surveys of different companies. The index shows trends in both the manufacturing and services sector. The index helps in determining whether the market conditions, as seen by purchasing managers, is expanding, contracting or staying the same. It is used to provide information regarding the current and future business conditions.

27.inflation (noun)

English Meaning - simply meaning “cost of living”; increase of price level of goods & services and vice versa decrease of currency value.

28.input cost inflation (or) cost-push inflation (noun)

English Meaning - inflation caused by an increase in prices of inputs like labour, raw material, etc.

29.spur (verb)

English Meaning - stimulate, encourage, prompt, galvanize.

30.hit (noun)

English Meaning - affect badly, damage, ruin.

31.succour (noun)

English Meaning - (financial) help, aid, assistance, relief.

32.gross (adjective)

English Meaning - total, complete, entire, overall, full, aggregate.

33.mark (verb)

English Meaning - indicate, represent, signify.

34.uptick (noun)

English Meaning - a small increase or upward trend.

35.in fact (phrase)

English Meaning - actually, really, in reality.

36.decelerate (verb)

English Meaning - slow down, reduce, lessen, slow up.

37.year-to-date (adjective)

English Meaning - referring to the period from the beginning of the current year to a specified date before the year’s end.

38.tall task (noun)

English Meaning - very difficult task; tall order.

39.catch up (phrasal verb)

English Meaning - reach, gain on, come to, succeed in reaching (the same standard, stage, or level of others).

40.fiscal (noun)

English Meaning - financial year.

41.payout (noun)

English Meaning - payment.

42.revenue growth (noun)

English Meaning - the increase in a company’s total revenue or income over a specific period, typically calculated quarterly/annually.

43.perhaps (adverb)

English Meaning - maybe, possibly.

44.credit flow (noun)

English Meaning - the availability of credit/loan.

45.pullback (noun)

English Meaning - a reduction in demand.

46.a tad (noun)

English Meaning - a small amount of something.

47.puzzling (adjective)

English Meaning - perplexing, mystifying, bewildering.

48.shoot up (phrasal verb)

English Meaning - increase/rise suddenly.

49.persistent (adjective)

English Meaning - continuous, constant, unending, unrelenting, unceasing.

50.contraction (noun)

English Meaning - In economics, it refers to a decline in national output as measured by gross domestic product.

51.scrutiny (noun)

English Meaning - examination, inspection, investigation.

52.address (verb)

English Meaning - tackle, deal with, attend to, try to sort out.

53.pain point (noun)

English Meaning - pain spot; a continuing/persistent problem.

54.afflict (verb)

English Meaning - trouble, bother, burden, distress, cause suffering to, beset, worry.