Finance Ministry releases “The Indian Economy: A Review – January 2024” instead of ‘Economic Survey 2023-24’ ahead of Interim Budget 2024-25
Why the Economic Survey will not be presented ahead of Budget 2024?
As the full budget process will remain disrupted due to elections, the economic survey will not be presented on January 31. Every year, a day before the presentation of the budget document, the central government presents an Economic Survey. However, a survey will not be presented on January 31, the budget being of an interim nature and in light of the upcoming elections.
A complete budget and the Economic Survey will be presented in July, when the results are declared and a new cabinet is appointed.
Chief Economic Adviser V Anantha Nageswaran outlines India’s potential to reach a $7 trillion economy by 2030 in the recently released mini-annual Economic Survey titled ‘The Indian Economy: A Review’.
The Centre has released a report on India's journey for the past 10 years titled 'Indian Economy–A Review'. The report also shared glimpses of the outlook for the economy in the coming years. This comprehensive 74-page document, a precursor to the upcoming Interim Union Budget 2024, delves into the country’s real growth rate projections for the fiscal year and highlights key challenges.
As the Lok Sabha elections 2024 are set to take place this year in April-May, a full budget is not being presented by FM Sitharaman. A complete budget and the Economic Survey will be presented in July, when the results are declared and a new cabinet is appointed.
Here are some key highlights of the report:
- Economic Growth Projection: The Indian economy is expected to achieve a growth rate of 7% or higher for FY24, and there are predictions of sustaining this growth in FY25. This would mark four consecutive years of robust growth post-pandemic.
- Global Challenges and Trends: The global economy is facing challenges such as supply chain disruptions, a slowdown in trade, and the impact of Artificial Intelligence. India is seen as resilient, having overcome past shocks and is navigating these challenges effectively.
- Shift in Global Manufacturing: The era of hyper-globalization in global manufacturing is ending. Governments are focusing on onshoring and friend-shoring, impacting transportation, logistics costs, and final product prices. India is urged to lower logistics costs and invest in product quality to maintain and expand market share.
- Artificial Intelligence and Energy Transition: The emergence of Artificial Intelligence poses challenges to services trade and employment. Additionally, there is a significant focus on the energy transition, with international pressure on developing nations to reduce carbon emissions. India is handling these challenges skillfully, balancing economic growth with climate-related initiatives.
- Domestic Economic Strength: Over the last decade, India has invested significantly in infrastructure, leading to a 3.3X increase in public sector capital investment. The financial sector is healthy, with strong non-food credit growth. The pursuit of inclusive development is evident in improved household financial health, job creation, declining unemployment rates, and progress in education and healthcare indicators. The government’s effective management during the COVID-19 pandemic and adept handling of crude oil supply have contributed to the country’s economic resilience and stability.
The Complete ‘The Indian Economy: A Review’ can be accessed at: https://dea.gov.in/sites/default/files/The%20Indian%20Economy-A%20Review_Jan%202024.pdf
Source: https://dea.gov.in/, https://twitter.com/FinMinIndia/status/1751888823964020971