The Economic Survey 2024 presented to the Lok Sabha through Finance Minister Nirmala Sitaraman on July 22. The economic study provides an overview of the functionality of the Indian economy, government policies, and the outlook for the next fiscal year.
This year, the government released “The Indian Economy: A Review” full economic study on January 31, with the general elections approaching.
Here’s a quick look at the most recent economic survey released in 2023, one day before the budget presentation.
India’s economy has recovered from the pandemic and is expected to grow by 6. 5% to 7% in FY23. Global economic issues such as the pandemic, Russia-Ukraine war, financial adjustment and Emerging inflation, as well as slowing economic activity in China, poses a challenge. Pent-up demand has led to an increase in private lending and the expansion of the real estate sector.
Government capital spending has boosted structural activity. The government set out to attract personal investment by expanding capital spending. Growing export demand and a rebound in income have fueled expansion in the manufacturing sector.
The banking sector met the demand for credit. Credit has also advanced in the MSME sector. Emergency credit line guarantee scheme for MSMEs in the face of pandemic difficulties.
The urban employment rate fell to 7. 2 percent in the second quarter of FY23. The survey also indicates that a healthy corporate balance sheet, digitalization of policies and resilience to global demanding situations will increase in this decade.
The deficit fell to 6. 7% in FY22 from 9. 2% in FY21, due to the pandemic.
Gross tax profit increased 15. 5% from April to November 2022 on an annual basis. It has higher excise taxes on petrol and diesel. It has reduced excise taxes on oil due to inflationary pressures. GST collection increased by 24. 8% from April to December 2022. It has earned ₹4. 07 lakh crore on the back of strategic disinvestment. Public debt moderated from 59. 2 per cent in FY21 to 56. 7 per cent in FY22.
Globally, countries have pursued tighter financial policy due to inflation. The capital market has performed well globally. Indian markets, on the other hand, have performed well.
The Reserve Bank of India raised the repo rate from 4% to 6. 25% between May and December 2022. Deposit and lending rates in banks have increased.
The trading volume of government securities recorded the largest expansion in two years, 6. 3% year-on-year.
This also marked the IPO of state insurer LIC, the largest IPO in the country.
Domestic inflation reached 7. 8%, mainly due to the rise in food prices, especially in rural areas.
The government regulated export of wheat flour, maida and suji at cost and imposed 20% export duty on rice. To stabilize pulse costs, the government maintained reserve inventories. Duties on refined palm oil and crude oil have been reduced and a stock limit has been set for edible oils. The difference between rural and urban inflation has decreased during this period.
According to the survey, social spending has increased steadily. Spending loyal to the fitness sector has evolved towards 2. 5% of GDP, thanks to the national fitness policy. According to the survey, 16. 4% of the population was classified as multidimensionally poor.
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