Economic Survey 2023-24

[UPSC World]

Economic survey 2023-24 Highlights I

1. India’s economy is projected to grow by 6.5–7%, with real GDP growth at 8.2% in FY24 and GVA growth at 7.2%.
2. Retail inflation decreased from 6.7% in FY23 to 5.4% in FY24, while the CAD improved to 0.7% of GDP.
3. Tax revenue consisted of 55% from direct taxes and 45% from indirect taxes, with free food grains provided to 81.4 Crore people.
4. Bank credit grew by 20.2% by March 2024, with strong growth in agriculture and industrial credit.
5. The primary capital market facilitated ₹10.9 lakh crore in capital formation, highlighting the importance of financial inclusion and digital financial inclusion.
6. India’s insurance market and microfinance sector are poised for significant growth.
7. Inflation remained stable, with the central government reducing prices for LPG, petrol, and diesel; core services and goods inflation also decreased.
8. Food inflation rose to 7.5% in FY24 due to agricultural challenges, prompting government interventions to manage prices.
9. India’s external sector remained strong, with improved rankings in the World Bank’s Logistics Performance Index and an increase in market share for global exports.
10. Services exports grew by 4.9% to USD 341.1 billion, and India remained the top remittance recipient, reaching USD 120 billion in 2023.
11. External debt remained sustainable, with the debt-to-GDP ratio at 18.7% at the end of March 2024.
12. The medium-term policy focus includes job and skill creation, enhancing the agriculture sector, addressing MSME challenges, and managing India’s green transition.
13. The growth strategy for “Amrit Kaal” includes boosting private investment, expanding MSMEs, promoting agriculture as a growth engine, and bridging the education-employment gap.
14. A coordinated effort between the Union Government, State Governments, and the private sector is needed for India to achieve over 7% economic growth.
15. Addressing the Chinese conundrum, deepening the corporate bond market, tackling inequality, and improving youth health are also critical components of India’s growth strategy.

[UPSC World]

Economic survey 2023-24 Highlights II

1. India’s climate efforts are recognized globally, with significant progress in renewable energy and energy efficiency.
2. Non-fossil sources now account for 45.4% of India’s electricity generation capacity, and the country has reduced its GDP emission intensity by 33% from 2005 levels.
3. Between 2005 and 2019, India’s GDP grew at a CAGR of 7%, while emissions grew at a CAGR of 4%.
4. Initiatives like the Coal Gasification Mission have contributed to annual energy savings and emission reductions.
5. Renewable energy expansion will increase demand for land and water.
6. Sovereign green bonds worth ₹36,000 crore were issued in 2023 to support green initiatives.
7. Digitization in healthcare, education, and governance has enhanced the effectiveness of welfare programs.
8. The Gini coefficient has declined, indicating reduced inequality in both rural and urban sectors.
9. Over 34.7 crore Ayushman Bharat cards have been issued, covering 7.37 crore hospital admissions.
10. The “Poshan Bhi Padhai Bhi” program aims to establish a high-quality preschool network at Anganwadi centers.
11. India granted nearly 100,000 patents in FY24, showing significant progress in R&D.
12. Under PM-AWAS-Gramin, 2.63 crore houses were constructed, and 15.14 lakh km of roads were built under the Gram Sadak Yojana.
13. The unemployment rate declined to 3.2% in 2022-23, with improved labor market indicators and rising female labor force participation.
14. The gig workforce is expected to expand significantly, and India needs to create 78.5 lakh non-farm jobs annually until 2030.
15. Agriculture grew at an average annual rate of 4.18%, with substantial credit disbursed and Kisan Credit Cards issued to farmers.
16. The industrial sector grew by 9.5% in FY24, with significant contributions from coal, pharmaceuticals, clothing, and electronics manufacturing.
17. The services sector’s GVA contribution reached pre-pandemic levels, with substantial growth in services exports and e-commerce.
18. Infrastructure development saw increased highway construction, new terminal buildings at airports, and improvements in logistics performance.
19. India invested heavily in the clean energy sector, with new investments of ₹8.5 lakh crore between 2014 and 2023.
20. The survey criticizes current global climate strategies and emphasizes the need for developing countries to choose their own pathways.