The Economic Survey 2023-24 took a more conservative stance in its projections than many international agencies, pinning GDP growth at 6.5-7 percent for FY25. It emphasised the need for more structural reforms to accelerate sustained growth to more than 7 percent. The survey suggested measures to contain inflation, highlighting that it is likely to be benign in the short run. Moneycontrol decodes the survey in 10 charts and excerpts from the survey:
India’s economy, according to the survey, carried forward the momentum in FY24 despite several external challenges. It said growth could exceed 7 percent on a sustained basis if structural reforms continue.
Achieving long-term price stability requires a clear, forward-looking vision, the survey said. It's important to assess progress in developing modern storage and processing facilities for fruits and vegetables to check price volatility, it added.
The survey underlined the need to generate 7.9 million jobs per year until 2030. The government has implemented measures to boost employment, foster self-employment and promote worker welfare, it noted.
A report by the World Bank Group's International Finance Corporation acknowledged India’s efforts to achieve committed climate goals, highlighting that it is the only G20 nation on track to meet targets that aim to limit global warming to 2 degrees centigrade, the survey pointed out. The survey noted that the country has adopted a mission mode approach to climate change.
It also highlighted the extension of the free foodgrain scheme to about 81.35 crore beneficiaries for a further period of five years, along with the need to push for agricultural policies to increase incomes.
The survey lauded efforts on financial inclusion using schemes such as direct benefit transfers and Jan Dhan Yojana. The financial inclusion strategy in the country has emphasised the usage of bank accounts by enhancing direct benefit transfer flows through these accounts and promoting digital payments using RuPay cards, UPI, etc, it said.
“Growth has been inclusive with a reduction in unemployment and multi-dimensional poverty and an increase in labour force participation. Overall, the Indian economy looks forward to FY25 optimistically, anticipating broad-based and inclusive growth,” the survey said.
Global capability centres (GCCs) in India have grown from little over 1,000 in FY15 to more than 1,580 by FY23. “Upskilling through government and industry collaboration can enable India to become a high-value partner in areas such as cybersecurity, enterprise management, and other specialised areas,” according to the survey.
Globally, India’s services exports constituted 4.4 percent of the world’s commercial services exports in 2022, the survey noted, pointing out that growth has continued post-pandemic.
“Given that infrastructure-creation efforts in India are currently predominantly public sector-led, a higher level of private sector financing and resource mobilisation from new sources will be crucial for India to continue down the path of building quality infrastructure,” the survey said.
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