Economic Survey 2024: Here are the key takeaways

Syllabus: Indian Economy

 Source: PIB

Context: Economic Survey 2023-24 was tabled in Parliament by Union Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman.

 What is the Economic Survey?

It provides a detailed report of the state of the national economy (from agriculture to unemployment to infrastructure) for the year that is coming to a close (2023-24) with forecasts of the upcoming financial year (2024-25).

It is prepared by the Economic Division of the Department of Economic Affairs (DEA), Ministry of Finance, under the guidance of the chief economic adviser (CEA).

Once prepared, the Survey is approved by the Finance Minister and the comments or policy solutions contained in the Survey are not binding on the government. The first Economic Survey was presented for 1950-51 and until 1964, it was presented along with the budget.

The main highlights of the Economic Survey are as follows:

Chapter	Highlights
State of the Economy – Steady as She Goes	Projected real GDP growth of 6.5–7%. Real GDP grew by 8.2% in FY24. Retail inflation reduced from 6.7% to 5.4%. CAD at 0.7% of GDP. Real GDP 20% higher than FY20 level. 55% of tax from direct Tax, 45% from indirect Tax. Free food grains to 81.4 crore people.
Monetary Management and Financial Intermediation- Stability is the Watchword	RBI maintained a steady policy rate at 6.5%. Credit disbursal grew by 20.2%. Double-digit bank credit growth. Gross and net NPAs at multi-year lows. Industrial credit growth at 8.5%. Primary capital markets facilitated ₹10.9 lakh crore.
Prices and Inflation- Under Control	Retail inflation at 5.4%, lowest since pandemic. Price cuts for LPG, petrol, and diesel. LPG inflation deflationary. Food inflation increased to 7.5%. Government interventions mitigated food inflation. RBI projects inflation to 4.5% in FY25.
External Sector – Stability Amid Plenty	India’s rank in World Bank’s Logistics Performance Index improved to 38th. CAD narrowed to 0.7%. Services exports grew by 4.9% to USD 341.1 billion. India top remittance recipient at USD 120 billion. External debt to GDP ratio at 18.7%.
Medium-Term Outlook – A Growth Strategy for New India	Focus on job creation, agriculture, MSMEs, green transition, addressing Chinese competition, and deepening corporate bond market. Growth strategy based on boosting private investment, MSMEs, and agriculture.
Climate Change and Energy Transition: Dealing with Trade-Offs	India only G20 nation aligned with 2°C warming. Renewable energy capacity increased. Non-fossil sources 45.4% of installed capacity. Emission intensity reduced by 33%. Annual energy savings of ₹1,94,320 crore.
Social Sector – Benefits that Empower	Welfare expenditure grew at 12.8% CAGR. Ayushman Bharat generated 34.7 crore cards. ‘Poshan Bhi Padhai Bhi’ for preschool education. Rise in higher education enrolment driven by SC, ST, OBC.
Employment and Skill Development: Towards Quality	Unemployment rate declined to 3.2%. Youth unemployment reduced to 10%. Female labor force participation rate rising. EPFO membership grew by 8.4% CAGR. Gig workforce expected to expand.
Agriculture and Food Management – Plenty of Upside Left If We Get It Right	Agriculture sector grew at 4.18%. Credit disbursed to agriculture ₹22.84 lakh crore. 90 lakh hectares under micro irrigation. Investment in agricultural research yields high payoff.
Industry – Small and Medium Matters	Industrial growth rate of 9.5%. Manufacturing sector growth driven by chemicals, pharmaceuticals, machinery. PLI schemes attracted ₹1.28 lakh crore investment. India’s electronics manufacturing 3.7% of global market share.
Services – Fuelling Growth Opportunities	Services sector GVA at 55%. India’s services exports 4.4% of global. Aviation sector grew 15%. Real estate sales highest since 2013. Internet density at 68.2%. E-commerce expected to cross USD 350 billion by 2030.
Infrastructure – Lifting Potential Growth	NH construction pace tripled to 34 km/day. Railways capital expenditure increased by 77%. New terminal buildings at 21 airports operationalized. Clean energy sector investment of ₹8.5 lakh crore.
Climate Change and India: Why We Must Look at the Problem Through Our Lens	Global strategies flawed; focus on overconsumption. India’s ethos of nature harmony. Emphasis on sustainable housing through traditional households. “Mission LiFE” for mindful consumption.

Mains Links:

Do you agree with the view that steady GDP growth and low inflation have left the Indian economy in good shape? Give reasons in support of your arguments. (UPSC 2019)

Prelims Links: UPSC 2015