Economic Survey 2023-24: What is it, why it matters and what to expect

After the elections, the newly elected government will deliver a comprehensive Economic Survey and Budget for the financial year.

Finance Minister Nirmala Sitharaman will unveil the Economic Survey 2023-24 on July 22, day one of the Budget session of Parliament. Released a day ahead of the Budget, the survey gives an account of the state of the economy, prospects and policy challenges.

The government presented a condensed The Indian Economy – A Review on January 31, a day ahead of the interim budget or a vote on account, ahead of the Lok Sabha election, leaving the full budget and the survey for the new government.

The survey will be presented in the Lok Sabha at 100 pm and in the Rajya Sabha an hour later. At 2.30 pm, chief economic adviser (CEA) V Anantha Nageswaran, prepared the survey, will hold a press conference.

Understanding the Economic Survey

The Economic Survey offers an in-depth analysis of the national economy for the fiscal year concluding but this time, it will be for the year that has already ended.

Prepared by the Economic Division of the Department of Economic Affairs (DEA) under the CEA’s guidance, the survey is approved by the finance minister before release.

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First presented for the 1950-51 fiscal year, the survey was initially part of the Union Budget. For decades, it was issued in a single volume covering various sectors of the economy and policy areas, including fiscal developments, employment, and inflation.

From 2010-11 to 2020-21, it was presented in two volumes, with the additional volume reflecting the CEA’s insights on major economic issues.

Since 2022-23, the survey has returned to a single-volume format, reflecting a change in leadership at the CEA’s office.

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Significance and Expectations

Though the survey’s recommendations are not binding for the Budget, it remains the most authoritative and comprehensive analysis of India’s economy from within the government. It provides a crucial framework for understanding economic trends and policy directions.

The survey comes amid concerns about employment, inflation and India realising its full potential.

Many economists argue that India's potential growth rate has decreased from 8 percent to 6 percent. The International Monetary Fund’s (IMF’s) July forecast raised the growth estimate for 2024-25 to 7 percent, citing improved private consumption in rural areas despite global and domestic economic challenges. The IMF also projects a 6.5 percent GDP growth for 2025-26.

However, significant challenges remain, including high unemployment and increased inequality exacerbated by the coronavirus pandemic. The informal sector has been particularly hard-hit, with the loss of approximately 1.65 million jobs, according to recent data.

The survey is expected to assess the extent of economic recovery and explore India’s growth potential. Key areas of focus may include strategies to enhance manufacturing growth and ways to sustain economic momentum amid global trade uncertainties.

The survey will likely provide a detailed analysis of critical economic issues and propose solutions to overcome them.