The Finance Minister, Nirmala Sitharaman presented the economic survey 2023-24 in the Parliament on 22 July 2024, ahead of the Union Budget. The article covers the major highlights of the economic survey and the official report of the government’s performance in FY 2023-24.
Economic Survey 2024
The Economic Survey is an official annual report that the Finance Ministry releases summarizing the economic performance of the country and the government’s financial performance in the last fiscal year. The Finance Ministry generally releases the Economy Survey a day before the Union Budget is tabled.
Today, Nirmala Sitharaman tabled the Economic Survey 2023-24 in the House of Parliament and said the future financial sector of the country is bright with some vulnerabilities that we have to overcome. The economic survey paves the way for future Indian economic policies and analyzes the previous financial year’s policies.
The 2023-24 Economic survey has pointed out some fresh perspectives and recommended action to maintain economic growth. The 476-page report indicates India’s solid recovery after the pandemic and the resilience of the Indian economy despite geopolitical changes. The survey has highlighted many points for each sector.
Economic Survey 2023-24 Inflation and GDP Key highlights
The inflation rate is around 5.08% falling within the target range (2-6%) of RBI. The inflation rate has been lower for the past four years but in recent months it has recently hiked. The current economic survey depicts the following points regarding inflation and economic growth:
- The 2023-24 Economic Survey highlighted that inflation has been under control for the past few years. However, the major concern is the rising food prices.
- The government has acknowledged that food inflation and how it has impacted low-income households.
- The survey says the trade deficit in 2024 dipped down compared to the previous year. The prices of food items have increased due to international conflicts and weather conditions affecting food costs.
- The RBI projects the inflation in the coming years 4.5% in Fy25 and 4.1% in Fy2026 based on the current policies.
- The government plans to enact policies that will lower the fertilizer prices, food, and energy prices to lower the food inflation in India.
- According to the report, the current GDP has grown to 8.2% in the year 2024 in the four quarters of 2024.
- The current growth indicates stable growth, where the policies and policymakers have played an essential role.
- The survey projected the GDP of 6.5% to 7% for the fiscal year 2024-25 indicating a stable growth post-pandemic.
Geopolitical concerns in the Economic Survey 2023-24
The economic survey highlights the following geopolitical concerns despite the stable economic growth:
- The political instability around the world can cause currency fluctuations that can affect the foreign investments and exports.
- The current global conflicts can disrupt the supply chains making the essential goods and resources expensive in the coming year.
- The geopolitical tensions can cause an impact on the oil prices which could cause an effect on fuel inflation and ultimately at the price of the goods.
- The reports suggest the government and private sector should focus on removing the issues and paving the path to boost export diversifications to balance the global impact.
Government Performance Key highlights on Economic Survey 2023-24
The economic survey shows the result of the government policies, lets see some key highlights of this portion of economic survey:
- The survey pointed out that women entrepreneurship is rising in India under the PM Mudra Yojana for female entrepreneurs and the stand-up India scheme. According to report, 66* Loans are sanctioned for female entrepreneurs under the MP Mudra Yojana and 77% beneficiaries are females who are taking advantage of Stand-up India.
- The PM jan Dhan Yojana has empowered women and the reports say 55.6% of bank accounts belong to women. The policy has opened the banking sector door for many rural women.
- The survey noted the PM Mantri Awas Yojana has provided affordable rental housing complexes to citizens and improves the living conditions of urban migrants and people living in slums. According to reports, 11.8 million houses have been sanctioned under the scheme and 8.4 million are complete.
- The reports suggest the tax collection policies have improved over the year, which has reduced the cost of collecting direct taxes from 0.66% of FY20 to 0.52% in FY23.
The government plans to expand renewable energy and green energy in the country. The economic survey recommends improving the domestic economy, the rise of technological advancement for self-reliance in every sector, boosting geo-economic fragmentation, and focusing more on sustainable growth in the financial sector as well as boosting the eco-friendly options.
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