Sitharaman on Monday presented the Economic Survey 2023-24, along with the statistical appendix in the Lok Sabha.
India’s Gross Domestic Product (GDP) is likely to grow at 6.5% to 7% in the current fiscal year amid global challenges which may impact exports, said Economic Survey 2023-24 tabled in Parliament by Union Finance Minister Nirmala Sitharaman on Monday.
The anticipated growth rate for 2024-25 is less than the 8.2 percent economic growth rate estimated for the preceding fiscal year. The Reserve Bank has forecasted that GDP growth for the fiscal year ending March 2025 will be 7.2 percent.
“…the Survey conservatively projects a real GDP growth of 6.5–7%, with risks evenly balanced, cognizant of the fact that the market expectations are on the higher side,” the document said.
“In the medium term, the Indian economy can grow at a rate of 7% plus on a sustained basis if we build on the structural reforms undertaken over the last decade. This requires a tripartite compact between the Union Government, State Governments and the private sector,” the Survey said.
Sitharaman on Monday presented the Economic Survey 2023-24, along with the statistical appendix in the Lok Sabha. The Economic Survey is an annual document presented by the government ahead of the Union Budget to review the state of the economy. On Tuesday, Sitharaman will present the Union Budget 2024-25.
Speaking about the Survey, Aditi Nayar, Chief Economist and Head – Research & Outreach, ICRA Ltd, said that it implicitly stresses that in the medium term, growth needs to be supported by the private corporate sector as well as the state governments.
“Managing inflation, on the other hand, is not just the prerogative of the RBI and its MPC, and would require active intervention by the Centre, especially in the arena of food price management. The realisation of both these paradigms is crucial to ensure an optimal growth-inflation mix over the medium term,” Nayar said.
Rumki Majumdar, Economist at Deloitte India said, “Last year, global exports of goods and services growth fell to 0.5% from 5.2% YoY in 2022. Amidst that, Indian total exports grew 2.63%, thanks to buoyancy in services exports. The economic survey points to a stronger rebound in GFCF that propped up growth as India emerged from the pandemic. While the government has shouldered a larger responsibility to invest in infrastructure, private investment in IP and machinery too has been strong growing cumulatively at 35% in four years. But investment in dwellings and structures has been even stronger pointing to a higher inclination among households to save in physical assets.”
Source:financialexpress.com