Finance Minister Nirmala Sitharaman tabled the Economic Survey 2023-24 in Parliament on Monday (July 22), ahead of the Union Budget on Tuesday. The Survey is authored by Chief Economic Advisor V Anantha Nageswaran and his team. Following are the highlights of the document: Economic growth projected at 6.5-7% in FY25 versus 8.2% in 2023-24 Unprecedented third popular mandate of Modi government signals political, policy continuity Domestic growth drivers supported economic growth in FY24 despite uncertain global economic performance Indian economy on a strong wicket and stable footing, demonstrating resilience in the face of geopolitical challenges To sustain post-pandemic recovery, there has to be heavy lifting on the domestic front Reaching agreements on key global issues like trade, investment and climate, has become extraordinarily difficult Short-term inflation outlook benign, but India faces persistent deficit in pulses and consequent price pressures Expectations of normal monsoon, and moderating global prices of imports give credence to benign inflation projections by RBI Hardships caused by higher food prices for poor and low-income consumers can be handled through direct benefit transfers or coupons for specified purchases valid for appropriate durations Ways suggested to explore whether India’s inflation targeting framework should target the inflation rate excluding food items Escalation in geopolitical conflicts and its impact may influence RBI’s monetary policy stanceOutlook for India’s financial sector appears brightAs financial sector undergoes critical transformation, it must brace for likely vulnerabilities originating globally or locally Healthier corporate and bank balance sheets will further strengthen private investment India’s policy adeptly steered through challenges, ensuring price stability despite global uncertainties Tax compliance gains, expenditure restraint, and digitisation help India achieve fine balance in govt's fiscal managementCapital markets becoming prominent in India's growth story; market resilient to global geopolitical, economic shocks AI casts a huge pall of uncertainty over the impact on workers across all skill levels Increased FDI inflows from China can help India enhance participation in global supply chain, boost exports As much as 54 pc of disease burden due to unhealthy diets; need transition towards balanced, diverse diet Remittances to India to grow at 3.7 pc to USD 124 billion in 2024, 4 pc in 2025 to reach USD 129 billion. The Economic Survey is an annual document presented by the government ahead of the Union Budget to review the state of the economy. The document also provides an overview of the short-to-medium-term prospects of the economy. The Economic Survey is prepared by the Economic Division of the Department of Economic Affairs in the Ministry of Finance under the supervision of the chief economic adviser. (Follow our Live updates below)
Finance Minister Nirmala Sitharaman tabled the Economic Survey 2023-24 in Parliament on Monday (July 22), ahead of the Union Budget on Tuesday. The Survey is authored by Chief Economic Advisor V Anantha Nageswaran and his team. Following are the highlights of the document: Economic growth projected at 6.5-7% in FY25 versus 8.2% in 2023-24 Unprecedented third popular mandate of Modi government signals political, policy continuity Domestic growth drivers supported economic growth in FY24 despite uncertain global economic performance Indian economy on a strong wicket and stable footing, demonstrating resilience in the face of geopolitical challenges To sustain post-pandemic recovery, there has to be heavy lifting on the domestic front Reaching agreements on key global issues like trade, investment and climate, has become extraordinarily difficult Short-term inflation outlook benign, but India faces persistent deficit in pulses and consequent price pressures Expectations of normal monsoon, and moderating global prices of imports give credence to benign inflation projections by RBI Hardships caused by higher food prices for poor and low-income consumers can be handled through direct benefit transfers or coupons for specified purchases valid for appropriate durations Ways suggested to explore whether India’s inflation targeting framework should target the inflation rate excluding food items Escalation in geopolitical conflicts and its impact may influence RBI’s monetary policy stanceOutlook for India’s financial sector appears brightAs financial sector undergoes critical transformation, it must brace for likely vulnerabilities originating globally or locally Healthier corporate and bank balance sheets will further strengthen private investment India’s policy adeptly steered through challenges, ensuring price stability despite global uncertainties Tax compliance gains, expenditure restraint, and digitisation help India achieve fine balance in govt's fiscal managementCapital markets becoming prominent in India's growth story; market resilient to global geopolitical, economic shocks AI casts a huge pall of uncertainty over the impact on workers across all skill levels Increased FDI inflows from China can help India enhance participation in global supply chain, boost exports As much as 54 pc of disease burden due to unhealthy diets; need transition towards balanced, diverse diet Remittances to India to grow at 3.7 pc to USD 124 billion in 2024, 4 pc in 2025 to reach USD 129 billion. The Economic Survey is an annual document presented by the government ahead of the Union Budget to review the state of the economy. The document also provides an overview of the short-to-medium-term prospects of the economy. The Economic Survey is prepared by the Economic Division of the Department of Economic Affairs in the Ministry of Finance under the supervision of the chief economic adviser. (Follow our Live updates below)