Budget 2024: Finance Minister Nirmala Sitharaman presented economic survey, government claims - inflation is under control

Finance Minister Nirmala Sitharaman has presented an economic survey in Parliament on the first day of the budget session. Finance Minister Nirmala Sitharaman will present the country's budget tomorrow i.e. on 23rd July. According to the Economic Survey presented in the Parliament, the Indian economy had developed well in the financial year 2023-24. According to the survey, although inflation has increased in some categories, but if all categories are looked at together, the government has claimed that inflation is under control. According to the Economic Survey, Gross Fixed Capital Formation is emerging as an important driver of economic growth.

Real GDP growth in FY24 was 8.2%. Despite the geopolitical challenges, the economy has improved and the corporate sector has performed at its best ever. GDP growth is estimated at 6.5% to 7% in FY25. FDI declined from $4760 Cr to $4580 Cr (YoY) in FY24.

It is likely that the global crisis could affect supply in 2024. Geopolitical tensions are likely to increase commodity prices. On the other hand, uncertainty about global demand remains. Geopolitical tensions may affect RBI's policy stance. The global trade outlook for 2024 will remain positive.

Manufacturing needs to be prioritized

NHAI will monetize the assets in FY25. Global uncertainty can affect capital flows. Manufacturing sector needs to be given priority. Hiring growth in the IT sector has been slow in FY24. The government needs reforms at the grassroots level. Governance has to be strengthened to implement structural reforms.

Despite uncertain global economic performance, domestic growth drivers should support economic growth in FY 2023-24. An increase in geopolitical tensions and their impact may affect RBI's monetary policy stance. Expectations of a normal monsoon and softening import prices boost RBI's inflation forecast.

India's policies responded effectively to the challenges by ensuring price stability despite global uncertainties. Strengthening the balance sheets of companies and banks will boost private investment. Due to tax compliance benefits, cost containment and digitalisation, the Government of India has been able to achieve a better balance in fiscal management.

Important role of capital market in development of India

Capital market is playing a major role in India's growth story. The market remains volatile amid global geopolitical and economic shocks. The short-term inflation outlook is soft, but India faces a shortage of pulses and consequent price pressures. The financial sector is undergoing significant changes, so it must be prepared for potential vulnerabilities that may arise at the global or local level.

AI is a threat to jobs

Artificial intelligence (AI) creates great uncertainty for workers at all skill levels. Increased FDI inflows from China could help India participate in global supply chains and increase exports.

Remittances from Indians settled abroad will grow by 3.7 percent to $124 billion in 2024. It is projected to reach $129 billion in 2025. The Economic Survey also states that around 54 percent of diseases are caused by unhealthy diet. The need to switch to a balanced, varied diet.

The survey is prepared under the supervision of the Chief Economic Adviser

The Economic Survey was conducted by the Economic Department of the Ministry of Finance under Economic Affairs. The survey has been prepared under the supervision of the Chief Economic Adviser. The first Economic Survey was introduced in the year 1950-51. Till 1964 it was presented along with the budget. The latter was introduced a day earlier. The Economic Survey contains an account of the previous year and suggestions for the economy in the coming year.

Since 2014, the Economic Survey has started to be released in two parts. The first volume focuses on the challenges of the economy. While the second volume has reviewed all the special sectors of the economy.