Economic Survey 2023-24 Calls for Collaborative Efforts to Propel India Forward

Kumar Rakesh

New Delhi, 22nd July. The preface of the Economic Survey 2023-24 emphasizes the need for a tripartite compact involving the Centre, State Governments, the private sector, and the public to navigate India through emerging global challenges. Tabled by Union Minister of Finance and Corporate Affairs, Nirmala Sitharaman, the survey outlines measures to sustain and enhance the resilience of the Indian economy.

Strong Economic Performance

The Survey highlights India’s robust economic recovery post-COVID-19, noting high growth rates and stable economic footing. It stresses that maintaining this recovery requires significant domestic efforts amid a challenging global environment.

Key indicators of economic health include:

• High economic growth in FY24 following growth rates of 9.7% and 7% in FY23 and FY22, respectively.
• Controlled headline inflation, despite elevated prices for specific food items.
• A lower trade deficit in FY24 compared to FY23.
• A current account deficit of around 0.7% of GDP for FY24, with a surplus in Q4 FY24.
• Ample foreign exchange reserves.
• Sustained public investment driving capital formation, complemented by private sector investment.

Investment and Employment

The Survey acknowledges the slight decline in external investment interest but notes that Foreign Direct Investment (FDI) in India remains strong. Despite global trends, India continues to attract profitable exits for investors, signaling a healthy market environment.

On employment, the Survey cites a surge in agricultural jobs due to reverse migration and increased female labor force participation in rural areas. Factory jobs have grown steadily, with larger factories seeing faster growth. However, employment in unincorporated enterprises has seen a decline, partially offset by job gains in trade and services.

Challenges and Future Prospects

The Survey outlines several challenges, including high-interest rates in developed countries, active industrial policies favoring domestic investment, and geopolitical uncertainties. It stresses the importance of collaboration between the private sector, governments, and academia to address these challenges and promote skill development and technological advancement.

Agriculture and Energy Transition

The Survey advocates for policy re-orientation in the agricultural sector to boost value addition, farmers’ income, and opportunities for food processing and exports. It also highlights the complexity of energy transition and mobility, calling for coordinated efforts across ministries and states.

Small Enterprises and Governance

The Survey calls for reducing compliance burdens on small enterprises and argues for the government to let go of unnecessary controls to free up capacity and enhance governance. It cites the Ishopanishad to emphasize the benefits of relinquishing control to foster freedom and growth.

Overall, the Economic Survey 2023-24 presents a comprehensive roadmap for India’s economic future, emphasizing collaboration, innovation, and sustainable growth.