Page 14 - Policy Economic Report - September 2024

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

The average highest-income household in Europe paid about $10.75 per ton of carbon dioxide in 2020
and the lowest-income households pay on average $1.25 more. This gap rises to $1.75 and $2 in countries
such as Germany and France, and $5 in Bulgaria.

Making carbon prices more uniform within countries and, across countries, would help equalizing the
burden of cutting greenhouse gas emissions within EU countries.

In fact, a global price would be most effective in this regard, as it would raise carbon pricing embedded in
EU households’ imports. Because such a scheme would also imply large differences in burdens across
countries, one possible alternative is the IMF’s carbon price floor proposal, which could promote
economic efficiency.

6. Indian Economy

India’s economic growth

The National Statistical Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI)
released Quarterly Estimates of Gross Domestic Product (GDP) for the April-June Quarter (Q1) of the
Financial Year (FY) 2024-25.

The key highlights of the estimates are as below: -

• Real GDP has been estimated to grow by 6.7% in Q1 of FY 2024-25 over the growth rate of 8.2%
in Q1 of FY 2023-24.

• Nominal GDP has witnessed a growth rate of 9.7% in Q1 of FY 2024-25 as compared to the growth
rate of 8.5% in Q1 of FY 2023-24.

• Real Gross Value Added (GVA) has grown by 6.8% in Q1 of FY 2024-25 over the growth rate of
8.3% in Q1 of the previous financial year. This GVA growth in the Q1 of FY 2024-25 has been driven
by significant growth in the Secondary Sector (8.4%), comprising of Construction (10.5%),
Electricity, Gas, Water Supply & Other Utility Services (10.4%) and Manufacturing (7.0%) sectors.

• Growth rate in Nominal GVA for Q1 of FY 2024-25 have been estimated at 9.8% over 8.2% growth
rate in Q1 of FY 2023-24.

• Private Final Consumption Expenditure (PFCE) and Gross Fixed Capital Formation (GFCF), at
Constant Prices, have witnessed growth rates of 7.4% and 7.5% respectively in Q1 of FY 2024-25.

• Net Taxes, at Current Prices, has observed the growth rate of 8.0 % in Q1 of FY 2024-25 resulting
in 0.1%-point gap between the growth rates of GVA and GDP.

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