Finance Minister Nirmala Sitharaman is set to table the Interim Budget for the fiscal year 2024-25 in Lok Sabha on February 1, 2024. Every year, the Finance Ministry rolls out the Economic Survey of India, a day ahead of the Budget.

The Economic Survey 2024 — prepared by the Economics Division of the Department of Economic Affairs under the stewardship of the Chief Economic Advisor — will hold a mirror to the state of India’s economy in the year gone by. Additionally, it will underline the challenges that could impede the country’s growth while also offering insights into opportunities.

What Is An Economic Survey?

The Economic Survey is an indicator of the national economy’s health over the last 12 months. Since 1964, the report has been released a day before the Union Budget, offering an analysis of the decisions taken by the government.

Importance

The report performs manifold duties: First, it provides a detailed account of the country’s performance in the past year. Second, it outlines how the government’s development programs and policy initiatives fared during the period. Third, it acts as a prelude to the Budget and gauges economic factors such as money supply, agricultural and industrial production, infrastructure, prices, employment, exports, imports, and foreign exchange reserves, among others.

Key Highlights of Economic Survey 2023

The survey projected a robust 7% gross domestic product (GDP) growth rate for the Indian economy in 2023-24. India’s GDP growth came out to be 8.7% in the previous fiscal year, according to the report.
The report predicted a modest 6-6.8% GDP growth in FY24, but that number could go further north in the wake of macroeconomic uncertainties and political developments around the world.
India’s baseline GDP is expected to grow by 11% in nominal terms and 6.5% in real terms in FY 24, as per Economic Survey 2023.
The survey insists that India quickly recovered from the pandemic blues, and that robust domestic demand and an uptick in capital capital investment will fuel growth in the upcoming year.
Furthermore, the Economic Survey 2023 said India will maintain its position as the world’s fastest-growing major economy. The Indian economy was on the path to recovery to pre-pandemic levels in FY23, the survey said.

What Makes the Economic Survey 2024 Different?

In recent years, the Economy Survey has been released in two parts. The first one sheds light on major economic developments while the other discusses in-depth issues, such as climate, poverty, education, and healthcare. As India goes to poll this year, the government is not supposed to release the Economy Survey ahead of the Interim budget, as per Parliament convention.

Come February, the government is expected to release a “concise” document that will put into perspective the Indian economy’s health. According to a CNBCTV18 report, it won’t be an in-depth Economic Survey, but rather a report similar to a survey.

The document will be sort of a quick guide to the challenges that lie ahead, along with crucial metrics — including GDP growth prediction, oil prices, and more. It will also mark a shift from traditional norms, as in the election year, the government only releases the Economic Survey after the full financial statement is presented around June-July.

 

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Filed under: News - @ January 1, 1970 12:00 am