Economic Survey is an annual document of the Ministry of finance. It gives a detailed account of the various sectors of the economy and overall economic scenario of the country in the past years and provides an outline for the year ahead. It is also the forum for analysis and research on the economy, and a source of policy ideas.
The Economic Survey is prepared by the Economic Division of the Department of Economic Affairs in the Finance Ministry under the overall guidance of the Cheif Economic Advisor.It is presented every year in the Parliment during the Budget Session,normally a day before the presentation of the Union Budget.
Key Highlight from the Economic Survey:
1. India’s Real GDP is projected to grow between 6.5–7% in 2024-25.
( Real GDP: Real GDP stands for Real Gross Domestic Product. It is the total value of a country’s goods and services in a given period, adjusted for inflation.)
2. During the decade ending FY20, India grew at an average annual rate of 6.6 per cent, more or less reflecting the long-run growth prospects of the economy.
3.The global trade outlook for 2024 remains positive, with merchandise trade(goods)expected to pick up after registering a contraction in volumes in 2023.
4.Real GDP grew by 8.2% in FY 24, exceeding 8 percent mark in three out of four quarters of FY 24, driven by stable consumption demand and steadily improving investment demand.
5. The Survey underlines that the shares of the agriculture, industry and services sectors in overall GVA at current prices were 17.7 per cent, 27.6 per cent and 54.7 per cent respectively in FY24.
( GVA at current prices :Gross value added at basic prices is output valued at basic prices minus intermediate consumption valued at purchasers’ prices. The GVA is calculated using the price at which the production is valued.)
6.RETAIL INFLATION declines to 5.4% in FY 24 due to deft administrative and monetary policies.
{Retail Inflation: the rate of inflation based on the consumer price index (CPI).}
7.RBI projects INFLATION to fall to 4.5% in FY25.
8. India tops REMITTANCE RECIPIENT COUNTRY globally with USD120bn in 2023.
( Remittances: Remittances are money transfers that migrants send to their families and friends in their home countries.)
9.India makes progress on climate action and energy efficiency; 45.4% installed electricity generation from non-fossil sources.
10. Manufacturing Sector grows by 9.9% IN FY24; Construction Activities also register a growth of 9.9%.
11. GROSS FIXED CAPITAL FORMATION (GFCF) from private non financial corporation’s increase by 19.8% IN FY23, acts as an important driver of growth.
( Gross fixed capital formation: It measures the value of acquisitions of new or existing fixed assets by the business sector, governments, and “pure” households (excluding their unincorporated enterprises) minus disposals of fixed assets.)
12.FISCAL DEFICIT of Union Government down from 6.4% OF GDP IN FY23 TO 5.6% IN FY24.
(Fiscal Deficit: It is a shortcoming in the income of a government as compared to its spendings)
13. India’s exports of services reaches a new high of USD 341.1bn in FY24.
14. FOREX RESERVES as of end of march 24 sufficient to cover 11 months of projected imports.
( Forex Reserves: It is foreign currency assets held by the central banks of countries.)
14.₹36.9 lakh Crore transferred via DIRECT BENEFIT TRANSFER since its inception in 2013.
15.FEMALE LABOUR FORCE PARTICIPATION RATE GROWS FROM 23.3% in 2017-18 to 37 % in 2022-23, mainly due to rising PARTICIPATION OF RURAL WOMEN.
( Female labor force as a percentage of the total show the extent to which women are active in the labor force. Labor force comprises people ages 15 and older who supply labor for the production of goods and services during a specified period.)
16. The Survey says, the all-India annual unemployment rate (persons aged 15 years and above, as per usual status) has been declining since the pandemic.
17. The Survey highlights that the Indian Rupee has also been one of the least volatile currencies among its emerging market peers in FY24.
18. Both Goods and Services Tax (GST) collections and the issuance of e-way bills, reflecting wholesale and retail trade, demonstrated double-digit growth in FY24.
19. Credit disbursal by scheduled commercial banks (SCBs) to industrial micro, small and medium enterprises (MSMEs) and services continues to grow in double digits despite a higher base.
{( Scheduled Commerical Banks: Scheduled banks are duly registered companies that have a paid-up capital of Rupees five lakhs. A commercial Bank which has been included in the Second Schedule of the Reserve Bank of India Act, 1934 (RBI Act). }
20.The net FPI inflows stood at USD 44.1 billion during FY24 against net outflows in the preceding two years.
( FPI: Foreign Portfolio Investment (FPI) is a type of foreign investment where investors purchase securities and financial assets in a foreign country without controlling the business operations.)