Economic Survey 2023-24
Economic Survey 2023-24 presented by Union Minister of Finance and Corporate Affairs Smt. Nirmala Sitharaman was tabled in Parliament on 22nd July. The survey provides a detailed overview of India’s economic performance and future outlook.
State of the Economy
State of the Economy: The Economic Survey projects real GDP growth of 6.5-7%. Real GDP grew by 8.2% in FY24 and GVA grew by 7.2%. Inflation moderated to 5.4% in FY24 and current account deficit (CAD) improved to 0.7% of GDP. The post pandemic recovery has also been remarkable.
Monetary Management and Financial Intermediation
Monetary Management and Financial Intermediation: The banking sector performed exceptionally well, with policy rates remaining stable and credit disbursement growing by 20.2%. Non-performing assets (NPAs) are at a low level, and focus has been placed on digital financial inclusion (DFI) for financial inclusion.
Inflation: Due to timely policy interventions, retail inflation remained at 5.4%. Fuel prices were cut and food inflation moderated to 7.5% in FY24. Dynamic stock management and open market operations helped contain inflation.
External Sector: Despite geopolitical challenges, India’s external sector remained strong. The logistics performance index improved and the current account deficit narrowed to 0.7% of GDP. Services exports and remittances grew. External debt to GDP ratio was 18.7%.
Medium Term Outlook: The focus is on job and skill creation, agriculture potential, MSME bottlenecks, green transition, managing relations with China and tackling inequality. The Amrit Kaal strategy covers six key areas: private investment, MSME expansion, agriculture, green transition, education-employment gap and state capacity building.
Climate Change and Energy Transition: India is the only G20 nation that is aligned with 2 degree centigrade warming and is a recognized leader in climate action.
This Economic Survey 2023-24 presents a comprehensive and in-depth analysis of India’s economic situation, including assessment of progress made in various sectors and future prospects.
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