The Economic Survey Report 2023 on Tuesday predicted that India's GDP growth will be between 6-6.8 percent over the next fiscal year, which will begin on April 1. It indicates a decrease from the 7% forecast for the current year. Finance Minister Nirmala Sitharaman tabled this Economic Survey 2023 in Parliament on the first day of the Budget session.
The Economic Survey 2023, prepared by the Department of Economic Affairs (DEA) under the guidance of Chief Economic Advisor V Anantha Nageswaran, asserted that India will remain the world's fastest-growing economy despite slower GDP growth in 2023-24. The survey projected that GDP growth will be driven mainly by capital expenditure, private consumption, the growth of credit to small businesses, and the return of migrant workers to cities.
According to Chief Economic Advisor V Anantha Nageswaran, the last eight years of reforms have resulted in India performing better in this decade. These reforms cover financial inclusion, banking, tax transparency, ease of doing business, and farmer welfare.
The International Monetary Fund on Tuesday also released the January update of its World Economic Outlook, projecting India's growth to 6.1 percent from 6.8 percent during the current fiscal ending March 31.
Economic Survey 2023 Key Highlights:
Borrowing costs and loan rates may remain "higher for longer," with entrenched inflation prolonging the tightening cycle.
The Indian rupee may face pressure if the Current Account Deficit (CAD) continues to widen.
The GDP will grow by 11% in nominal terms in the coming fiscal year.
Regarding exchange rates, India is the fifth-largest economy and the third-largest in purchasing power parity.
The PM Gati Shakti scheme, the National Logistics Policy, the expansion of the public digital platform, the capital investment cycle, and credit disbursement will drive India's economic growth.
India's agriculture sector has grown at an average annual rate of 4.6$ over the last six years. This sector's buoyancy and growth can be attributed to measures taken by the government to boost crop and livestock productivity, provide farmers with the certainty of returns (Minimum Support Price), promote crop diversification, and implement targeted interventions to improve credit availability, facilitate mechanization, and boost organic farming and horticulture.
The production of masks by Self Help Groups has been a significant contribution, allowing communities in remote rural areas to access and use masks while also providing vital protection against the Covid-19 virus. SHGs under DAY-NRLM produced more than 16.9 crore masks as of January 4, 2023.
The credit-investment cycle is poised for an upturn in the third decade, with banks well-capitalized and corporates financially stronger.
The reforms being implemented in the energy and power sectors will aid India's progress over the next 25 years.
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