The Budget Session of Parliament commenced today with Union Finance Minister Nirmala Sitharaman tabling the Economic Survey of India 2023-24. The voluminous report, including a statistical appendix, was placed in both Houses of Parliament. The Union Budget for 2024-25 will be presented in the Lok Sabha on July 23. This would be the first Budget of the Modi Government in its third term continuously.
Key Highlights of Economic Survey 2023-24:
- Global Growth: For 2023, global growth is set to pick up at a 3.2% pace based on both domestic strife and geopolitical turmoil, combined with monetary tightening.
- India’s Performance: FY24 GDP growth of 8.2% indicated strong momentum for the economy, notwithstanding global challenges.
- Human Capital Formation: It is to be noted that in FY24, Rs 10.9 lakh crore was raised, comprising 29% of capital formation.
- Sector Transformation: The financial sector is dynamic, with potential vulnerabilities demanding flexible policy interventions.
- Inflation Trends: The core inflation had come down in FY24, and retail inflation is also on the decline. The Reserve Bank of India has projected a 4.5% inflation rate for FY25.
- Inflation Influences: Inflation has been influenced by the pandemic, geopolitical tensions, and disruptions to supply chains.
- Trade Balance: Merchandise imports moderated, whereas services exports increased by 4.9% to $341.1 billion.
- Debt Sustainability: External debt stands at 18.7% of GDP, with improved logistics performance.
- Growth Strategy: Encourage private investment, enhance the growth of MSMEs, increase agricultural yield, finance the green transition, address state capacity issues, and bridge the education-employment gap.
- Sustained Growth: The potential for growth exceeding 7% lies with continued structural reforms and collaboration between the government and the private sector.
- Renewable Energy: The capacity of installed energy from non-fossil sources accounts for 45.4% of the country’s total.
- Green Bonds: Rs. 36,000 crore was raised in 2023 for emission reduction projects.
- Welfare Reforms: The Ayushman Bharat scheme has so far produced 34.7 crore cards for 7.37 crore hospital admissions, saving over Rs 1.25 lakh crore in out-of-pocket expenses.
- Labor Market: The unemployment rate stands at 3.2%, while the net additions to EPFO payroll have doubled over five years.
- Sector Growth: The growth in the livestock sector registered a 7.38% CAGR, whereas the fisheries sector grew at an 8.9% CAGR.
- Tech Adoption: Initiatives like the Digital Agriculture Mission and e-NAM are enabling smart agriculture technologies.
- Industrial Growth: Industrial growth crossed 9.5% in FY24, with major improvements in manufacturing, construction, and mining.
- Coal Production: A record 997.2 million tonnes of coal were produced, reducing import dependence.
The current Economic Survey of India is an ode to the country’s economic successes and paves the way for the upcoming Union Budget, which will highlight the government’s commitment to achieving sustainable growth and development across various sectors.
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Source: Money control
News Desk
