ARTICLE
India Budget 2024 Live: A day ahead of presenting the Union Budget for the upcoming year, Finance Minister Nirmala Sitharaman tabled the Economic Survey 2023-24 and kicked off the Parliament’s Budget Session. The survey projects the Indian economy will grow at 6.5-7 per cent in real terms in FY25, and the Reserve Bank of India expects inflation to be 4.5 per cent in FY 25. On employment, the survey notes: “The biggest disruption for the future of work is the accelerated growth in AI, which is poised to revolutionise the global economy.” The survey says that the country’s economy has recovered swiftly from the pandemic, with its real GDP in FY24 being 20 per cent higher than the pre-COVID, FY20 levels. While the current GDP level is seen close to the pre-pandemic trajectory in Q4 FY24, the Survey adds any escalation of geopolitical conflicts in 2024 may lead to “supply dislocations, higher commodity prices, reviving inflationary pressures and stalling monetary policy easing with potential repercussions for capital flows”, which could also influence RBI’s monetary policy stance. What is the Economic Survey ? As the name suggests, the Economic Survey is a detailed report of the state of the national economy in the financial year that is coming to a close. It is prepared by the Economic Division of the Department of Economic Affairs (DEA) in the Union Finance Ministry, under the guidance of the Chief Economic Adviser. Once prepared, the Survey is approved by the Finance Minister. Even though it comes just a day before the Budget, the assessment and recommendations carried out in the survey are not binding on the Budget. The biggest disruption for the future of work is the accelerated growth in AI, which is poised to revolutionise the global economy, the Survey says. The document notes: "The impact of automation on workers being complex and uncertain, the direction of technological change remains susceptible to forces of political economy. India thus needs to invest in research and steer the AI bandwagon towards shared prosperity." The short-term inflation outlook for India is benign, and the expectation of a normal monsoon and moderating global prices of key imported items give credence to the projections made by the RBI and IMF, the Economic Survey said. However, to ensure long-term price stability, the Survey 2023-24 suggested making focused efforts to increase the production of major oilseeds, expanding the area under pulses, and assess the progress in developing modern storage facilities for specific crops. To read the full text of the survey, click here. "India suffered two big economic shocks in quick succession. Bad debts in the banking system and high corporate indebtedness were one. It took the first term of the present government and more to bring it under control. The Covid pandemic was the second shock and quickly followed the first one. So, it is difficult to conclude that the Indian economy’s ability to create employment is structurally impaired. Nonetheless, going forward, the task is cut out," says the Economic Survey. The survey noted that the country's economy recovered swiftly from the pandemic, with its real GDP in FY24 being 20 per cent higher than the pre-COVID, FY20 levels. While the current GDP level is seen close to the pre-pandemic trajectory in Q4 FY24, the Survey adds any escalation of geopolitical conflicts in 2024 may lead to “supply dislocations, higher commodity prices, reviving inflationary pressures and stalling monetary policy easing with potential repercussions for capital flows”, which could also influence RBI’s monetary policy stance. Chief Economic Advisor V Anantha Nageswaran in the preface of the Survey has pointed out that though the Indian economy is on a strong wicket and stable footing, there has to be heavy lifting on the domestic front for recovery to be sustained. The survey says: assuming a normal monsoon and no further external or policy shocks, the RBI expects headline inflation to be 4.5 per cent in FY25 and 4.1 per cent in FY26. IMF has projected an inflation rate of 4.6 per cent in 2024 and 4.2 per cent in 2025 for India. As the name suggests, the Economic Survey is a detailed report of the state of the national economy in the financial year that is coming to a close. It is prepared by the Economic Division of the Department of Economic Affairs (DEA) in the Union Finance Ministry, under the guidance of the Chief Economic Adviser. Once prepared, the Survey is approved by the Finance Minister. Even though it comes just a day before the Budget, the assessment and recommendations carried out in the survey are not binding on the Budget. Check our our explainer on the document here . The Economic Survey has projected that the Indian economy will grow at 6.5-7 per cent in FY25. A day ahead of presenting the Union Budget for the upcoming year, Finance Minister Nirmala Sitharaman has tabled the Economic Survey 2023-24 and kicked off the Parliament’s Budget Session. Hi, welcome to our blog! Stick around for the latest updates on the Economic Survey and the Union Budget. None
What’s New
Spotlight
Advertisement
Featured News
Latest From This Week
Popular News
