No Economic Survey On January 31?
In 2024, India will not have the usual Economic Survey traditionally presented before the Union Budget. Instead, Finance Minister Nirmala Sitharaman will present an interim budget, known as a vote-on-account, on February 1. The reason for not presenting the Economic Survey this year is the election context. 2024 is an election year in India, and presenting the Economic Survey could lead to politicization due to the potential change in government after the elections. This could disrupt the regular Budget process.
However, the Ministry of Finance has released an alternative report titled “Indian Economy – A Review,” prepared by the office of Chief Economic Advisor (CEA) V Anantha Nageswaran. This report does not replace the official Economic Survey but provides valuable insights into the Indian economy’s trajectory and prospects over the past decade and its future outlook. It’s important to note that the official Economic Survey is expected to be presented after the general elections and the formation of the new government. The Review consists of two chapters and takes stock of the state of the Indian economy and its journey in the last 10 years and offers a brief sketch of the outlook for the economy in the coming years.
Key points from “Indian Economy – A Review” include
- India’s projected growth to a $5 trillion economy in the next 3 years and a potential to reach $7 trillion by 2030.
- The review focuses on structural reforms undertaken in the past decade and their positive impact.
- It offers a cautious outlook on future growth and inflation, acknowledging global uncertainties and challenges.
- India is expected to surpass a GDP growth rate of 7.2% in FY24, outpacing the global economy.
- For the third consecutive year, the Indian economy is set to achieve a growth rate exceeding 7%.
- There has been a rise in public sector investment, a robust financial sector, and substantial non-food credit growth over the past decade.
- India is now the third-largest fintech economy globally, after the USA and the UK.
- India has become the fourth-largest stock market worldwide, surpassing Hong Kong.
- The PM Jan Dhan Yojana has significantly increased the percentage of women holding bank accounts.
- There has been a surge in the female labour force participation rate and initiatives like the Skill India Mission, Start-Up India, and Stand-Up India are contributing to this increase.
- A significant increase in the Gross Enrolment Ratio (GER) for females in higher education.
- The report highlights the dynamism in the MSME sector due to government support.
- The implementation of GST and the integration of domestic markets have improved economic efficiency and lowered logistics costs.