The Indian economy has recovered and expanded in a systematic manner post the pandemic and the real gross domestic product (GDP) in 2023-24 will be 20 per cent higher than the pre-pandemic 2019-20 level, according to the Economic Survey 2023-24 tabled in Parliament on Monday.
This is a feat achieved by only a few major economies, according to the survey document.
PressNews24 provides latest news, bollywood news, breaking news hollywood, top tech news, business standard news, indian economy news, world economy news, travel news, mumbai news, latest news mumbai loksabha election 2024, video viral news, delhi news, Only at PressNews24.in
“Prospects for sustained strong growth look good in FY25, subject to geopolitical, financial market and climate risks,” the Economic Survey said.
According to the World Economic Outlook published by the International Monetary Fund (IMF) in April this year, global economic growth is projected to be 3.2 per cent in 2023. Different patterns of growth have emerged across countries.
Wide variations in growth performance across countries are due to domestic structural issues, uneven exposure to geopolitical conflicts, and the impact of monetary policy tightening.
The Economic Survey said that India's economy will continue the momentum of 2022-23 in 2023-24 as well, despite facing external challenges.
India's real GDP will grow at 8.2 percent in 2023-24, exceeding the 8 percent mark in three out of four quarters of 2023-24.
“The focus on maintaining macroeconomic stability ensured that external challenges had minimal impact on India's economy,” the survey said.
The report said that the government's emphasis on capital expenditure and the continued pace of private investment have boosted capital formation growth. Gross fixed capital formation grew by 9 per cent in real terms in 2023-24.
The Economic Survey said that going forward, better corporate and bank balance sheets will further strengthen private investment.
“Positive trends in the residential real estate market indicate that capital formation in the household sector is increasing significantly,” the survey said.
Inflation pressures arising from global crises, supply chain disruptions and monsoon uncertainties have been managed efficiently by the administrative and monetary policy responses. As a result, retail inflation declined to 5.4 per cent in 2023-24 after averaging 6.7 per cent in 2022-23.
“The fiscal balance of the general government has improved progressively despite increased public investment. Tax compliance gains driven by process reforms, expenditure restraint and increasing digitalisation have helped India achieve this fine balance.”
Weak global demand for commodities has put pressure on the external balance, but strong services exports have largely counteracted this.
As a result, the current account deficit (CAD) will be 0.7 per cent of GDP during 2023-24, better than the deficit of 2.0 per cent of GDP in 2022-23.
Union Finance Minister Nirmala Sitharaman tabled the Economic Survey 2023-24 in Parliament today. The Economic Survey document prepared by the Economic Division of the Department of Economic Affairs in the Ministry of Finance and under the supervision of the Chief Economic Adviser gives an insight into the state of the economy and various indicators for 2023-24 (April-March) and some outlooks for the current year.
Sitharaman will present the Union Budget for 2024-25 in Parliament tomorrow. With this budget presentation, Sitharaman will surpass the record set by former Prime Minister Morarji Desai, who as finance minister presented five annual budgets and one interim budget between 1959 and 1964. Sitharaman's upcoming budget speech will be her seventh.