New Delhi: Union Finance Minister Nirmala Sitharaman tabled the Economic Survey 2023-24 in Lok Sabha on Monday, the first day of the Monsoon Session of Parliament.
The document has been prepared by the Economic Division of the Department of Economic Affairs in the Ministry of Finance and formulated under the supervision of the Chief Economic Adviser. It is a report card on the economy and presents the growth outlook.
On Tuesday, FM Sitharaman will present the Union Budget for the first year of the newly formed NDA government. This will mark her sixth full budget and her seventh budget speech overall, including the last interim budget speech.
The Economic Survey 2023-24 discusses the economic challenges currently facing the country and provide an economic analysis of the previous year. Additionally, it offers a forecast for economic growth in India.
Role of Economic Survey
The Economic Survey plays a crucial role in examining various trends across key sectors of the economy, including agriculture, industrial production, exports, imports and infrastructure, among others. It also offers insights into potential economic reforms that could significantly impact the Budget.
Records indicate that the first Economic Survey was presented in Parliament during 1950-51. Initially part of the Union Budget, it has since 1964 been presented separately earlier in the year, reflecting its evolving role in shaping economic policy.
Who Prepares Economic Survey?
The Economic Survey is being prepared by a team of economists led by Chief Economic Advisor V Anantha Nageswaran within the Ministry of Finance. As per tradition, the Economic Survey will provide statistical information and analysis on various sectors of the economy, including data on employment, GDP growth, inflation, and the budget deficit.
Importance Of Survey
The Economic Survey gives policymakers valuable insights and recommendations, bringing clarity through its unbiased analysis of the economy. It also keeps everyone—from policymakers to the public—up-to-date on current economic conditions and what lies ahead. This Survey is a valuable resource for academics, researchers, and analysts studying Indian economic policy and performance. It contributes to economic literature, research papers, and debates on various aspects of economic development.
This detailed explanation highlights the multifaceted role of the Economic Survey in India's economic governance and its impact on various stakeholders, making it a cornerstone of economic policy discourse and decision-making.
Previous Year's Economic Survey
Chief economic advisor V. Anantha Nageswaran said that in general, global economic shocks in the past were severe, but spaced out in time. This changed in the third decade of this millennium. At least three shocks have hit the global economy since 2020. It all started with the pandemic-induced contraction of the global output, followed by the Russian-Ukraine conflict leading to a worldwide surge in inflation.
It says that the Indian economy, however, appears to have moved on after its encounter with the pandemic, staging a full recovery in FY22 ahead of many nations and positioning itself to ascend to the pre-pandemic growth path in FY23.
What Is GDP Growth?
The GDP growth rate is like taking the pulse of a country's economy. It tells us how fast or slow the economy is expanding over a specific time, usually a year or a quarter. GDP, which stands for Gross Domestic Product, measures the total market value of all goods and services produced within a nation's borders during that time.
Economists calculate the GDP growth rate by comparing the GDP of one period with the GDP of a previous period. It's expressed as a percentage and gives us a clear idea of how well the economy is doing and how people are likely to be affected. When the GDP growth rate is positive, it means the economy is growing. If it's negative, it means the economy is shrinking, which often leads to job losses and financial challenges for families.
Current Economic Situation
The GDP growth rate for 2023-24 has crossed the eight per cent mark and stands at 8.2 per cent. Also, the International Monetary Fund (IMF) has adjusted India's GDP growth forecast for the fiscal year 2024-25 upward to 7%, an increase of 20 basis points from its earlier estimate of 6.8%.
This revision is attributed to enhanced consumption prospects, especially in rural areas, expected to strengthen the nation's economic growth. The IMF has kept its growth projection for the subsequent financial year steady at a more modest rate of 6.5%, as indicated in the latest World Economic Outlook report.
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