By Krishnanand
New Delhi: The Economic Survey of India is an annual flagship document released by the Ministry of Finance, Government of India. It provides a detailed account of the country's economic performance over the past fiscal year which begins on April 1 every year and ends on March 31. The survey highlights key economic trends, challenges, and opportunities. This comprehensive report serves as a valuable resource for policymakers, economists, and researchers, offering insights into the overall health and direction of the Indian economy. Over the years, economic survey has become a platform for the country’s Chief Economic Advisors to present new economic ideas before the country.
Content of the Economic Survey
Earlier economic surveys were divided in two parts, Volume 1 and Volume 2. Volume 1 focused on macroeconomic developments, fiscal performance, and sectoral progress. It analysed key indicators such as GDP growth, inflation, employment, foreign exchange reserves, and fiscal deficit. It also explored the performance of various sectors of the Indian economy, including agriculture, industry, and services, examining their growth drivers and challenges.
Volume 2 of India’s economic survey, used to cover policy issues such as socio-economic issues facing the country. For example, issues such as poverty, inequality, health, education, and environmental sustainability were covered in the second part. It explored the impact of government policies and programs on these areas, highlighting achievements and areas that require further attention.
However, since the economic survey for FY 2021-22, the two volumes have been merged and not published separately. In addition to these two main sections, the Economic Survey often included supplementary chapters or annexures that go deep into specific topics of relevance. For example, these may include analyses of particular sectors, discussions of emerging trends, or assessments of specific policy initiatives.
Focus Areas in Recent Economic Surveys
Over the past three to four years, several key themes have emerged as recurring focus areas in the Economic Survey.
Sustainable and Inclusive Economic Growth
For example, sustainable and inclusive growth has been a key thrust area for the economic surveys in the last three-four years. The thrust on achieving economic growth that is both sustainable and inclusive has been a prominent theme. The Surveys have highlighted the need to balance economic development with environmental protection and social equity. Recent Economic Surveys have also stressed the importance of creating jobs, reducing poverty and inequality, and ensuring access to basic services for all segments of the population.
However, Economic Surveys also suggest bold economic ideas to tackle contemporary challenges facing the country’s economy. For example, the last economic survey presented by the Chief Economic Advisor V. Anantha Nageswaran suggested that rather than relying on China for imports, the country should also explore attracting Chinese capital so that Chinese manufacturers can be encouraged to produce in India subject to addressing the security concerns in some strategic sectors.
Focus on Infrastructure
India is in the middle of a massive infrastructure upgrade to shore up its economic growth. The recent Economic Surveys have consistently emphasised the need to invest in and improve the country's infrastructure. This includes areas like transportation, energy, communication, and water resources. The Survey has highlighted the importance of creating an enabling environment for private sector participation in infrastructure development.
Innovation and Technology
Economic Surveys have also underscored the significance of innovation and technology in enhancing productivity and competitiveness. They have emphasised the need to foster a culture of innovation, promote research and development, and encourage the adoption of new technologies across various sectors. The Survey has also highlighted the importance of developing a skilled workforce to meet the demands of a rapidly evolving economy.
Agriculture
Given the significant role of agriculture in the Indian economy, the Surveys have consistently focused on measures to enhance agricultural productivity and improve the livelihoods of farmers. This includes promoting the use of modern technologies, improving irrigation facilities, diversifying crops, and strengthening market linkages.
Macro-Economic policies
The Surveys have emphasised the importance of maintaining fiscal prudence and macroeconomic stability to ensure sustainable economic growth. It has highlighted the need to manage the fiscal deficit, control inflation, and maintain a stable external balance. The Survey has also stressed the importance of structural reforms to enhance the efficiency and competitiveness of the economy.
Economic Survey 2024-25
Finance Minister Nirmala Sitharaman will present the Economic Survey for the current financial year i.e. FY 2024-25 on January 31, 2025. First, the President of India Droupadi Murmu will address the joint sitting of both houses on the first day of the start of the first session of Parliament this year as per the provisions of Article 87 of the Indian Constitution. It is expected to start at 11 am in the morning.
Shortly, after this special Presidential Address, Finance Minister Nirmala Sitharaman is expected to lay the Economic Survey 2024-25 in the Lok Sabha. This year’s economic survey is expected to give broad guidelines for the economic policies for the next three-four years and the challenges faced by the Indian economy.
