Today Finance Minister Nirmala Sitharaman presented the Economic Survey 2023-24 in Parliament, offering a comprehensive review of India’s economic performance and outlook. She is set to present the Union Budget for 2024-25 in the Lok Sabha on July 23. This budget marks the first of the Modi Government’s third consecutive term in office. Despite global challenges, the Indian economy has demonstrated resilience. Below are the key highlights:
Key Highlights from India’s Economic Survey 2023-24
Global and Domestic Growth
- Global growth is projected at 3.2% in 2023, impacted by domestic issues, geopolitical conflicts, and monetary tightening.
- India’s real GDP grew by 8.2% in FY24, maintaining strong momentum despite global headwinds.
Capital Formation and Financial Sector
- Rs 10.9 lakh crore was raised in FY24, covering 29% of capital formation.
- As per Economic Survey 2023-24, the financial sector is evolving, with potential vulnerabilities requiring agile policy interventions.
Inflation and Prices
- Core inflation fell in FY24, with retail inflation driven down.
- The RBI projects 4.5% inflation in FY25.
- Global pressures, including the pandemic, geopolitical tensions, and supply disruptions, have affected inflation.
External Sector and Debt Sustainability
- Merchandise imports moderated, while services exports rose by 4.9% to $ 341.1 billion.
- External debt stands at 18.7% of GDP, with improved logistics performance.
Growth Strategy and Potential
- The focus is on private investment, MSME growth, agriculture, green transition financing, education-employment gap, and state capacity.
- Sustained growth potential of 7%+ is possible with continued structural reforms and collaboration between the government and private sector.
Climate Change and Energy Transition
- Non-fossil sources constitute 45.4% of installed capacity.
- Rs 36,000 crore was raised in 2023 for emission reduction projects through green bonds.
Social Sector and Welfare Reforms
- The Ayushman Bharat scheme has generated 34.7 crore cards and covered 7.37 crore hospital admissions, saving over ₹1.25 lakh crore in out-of-pocket expenses.
Labor Market and Sector Growth
- Economic Survey 2023-24 tells us that the unemployment rate is at 3.2%, and EPFO net payroll additions have doubled in five years.
- The livestock sector grew at a CAGR of 7.38%, and the fisheries sector grew at 8.9% CAGR
- Smart agriculture technologies are being adopted through initiatives like the Digital Agriculture Mission and e-NAM.
Industrial Growth and Coal Production
- Industrial growth reached 9.5% in FY24, with significant improvements in manufacturing, construction, and mining.
- Record coal production of 997.2 million tonnes reduced import dependence.
The Economic Survey 2023-24 paints a positive picture of India’s economic performance and potential, focusing on sustained growth through structural reforms, collaboration, and targeted interventions across various sectors. Now, all eyes are on the Union Budget for 2024-25 which will be presented tomorrow at 11 AM. For more accurate and live updates follow us on WhatsApp & Telegram.
