'Economy on strong footing & demonstrating resilience': Sitharaman presents Economic Survey 2023-24, check key highlights
The Union Finance Minister Nirmala Sitharaman tabled the Economic Survey 2023-24 in Parliament today. On July 23, 2024, she will build on this foundation with the presentation of the Union Budget for 2024-25 in the Lok Sabha.
The Economic Survey in India is an annual report released by the Ministry of Finance, typically a day before the Union Budget is presented.?
This document offers a detailed overview of the country's economic performance over the past year, highlighting the government's policies and priorities. It provides insights into various sectors, economic indicators, and trends, setting the stage for the upcoming budget.
The latest survey brings encouraging news: "The Indian economy is on a strong footing and demonstrating resilience amid geopolitical challenges. The economy has consolidated post-Covid recovery with policymakers - fiscal and monetary - ensuring economic and financial stability...," the survey affirms.
Here are the key highlights from the Economic Survey 2023-24:
Growth Projections
The survey conservatively forecasts a real GDP growth of 6.5每7% for FY25, with risks evenly balanced.
Economic Performance
India's economic growth reached 8.2% in FY24, bolstered by a 9.5% rise in industrial growth.
Manufacturing Sector
Despite pandemic-related challenges, the manufacturing sector achieved an average annual growth rate of 5.2% over the past decade. Key growth drivers include:
- Chemicals
- Wood products and furniture
- Transport equipment
- Pharmaceuticals
- Machinery Equipment
Textile Industry
India remains the world＊s second-largest clothing manufacturer and a top-five exporter. In FY24, textile and apparel exports, including handicrafts, grew by 1% to reach ?2.97 lakh crore.
Electronics Manufacturing
The sector accounted for an estimated 3.7% of the global market share in FY22. Domestic production surged to ?8.22 lakh crore, with exports rising to ?1.9 lakh crore in FY23.
Banking and Finance
India's banking and financial sectors showed impressive performance in FY24. Notable improvements include significant bank credit growth, reduced NPAs and GNPAs, and enhanced asset quality.
Capital Markets
The primary capital markets facilitated ?10.9 lakh crore in capital formation during FY24, with a notable increase in market capitalization.
Digital Payments and Financial Inclusion
The use of direct benefit transfers and digital payment systems like RuPay and UPI is expected to bolster financial inclusion.
Inflation
Headline inflation is under control, with the Reserve Bank predicting 4.5% for FY25 and 4.1% for FY26. However, food inflation rose from 6.6% in FY23 to 7.5% in FY24.
Employment
The survey highlights that about half of Indian graduates are not immediately employable upon graduation.
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