New Delhi: Finance Minister Nirmala Sitharaman has presented the Economic Survey 2024 in Parliament today, offering a comprehensive review of India’s economic performance over the past financial year.
Prepared by the Economics Division of the Department of Economic Affairs under the guidance of Chief Economic Advisor (CEA) V. Anantha Nageswaran, the survey precedes the Budget announcement.
The Economic Survey 2024 highlights the resilience of the Indian economy despite global challenges. India’s real GDP grew by 8.2 percent in FY24, marking over 7 percent growth for the third consecutive year. This robust performance was driven by stable consumption demand and steadily improving investment demand.
The survey also underscored the potential to make the agricultural sector attractive and productive for urban youth, positioning India as a global model for both developing and developed nations.
Despite government tax cuts aimed at boosting capital formation, the survey noted a mixed response from the corporate sector. Private sector investment in machinery, equipment, and intellectual property grew cumulatively by only 35 percent over four years to FY23, while investment in dwellings, other buildings, and structures increased by 105 percent. This imbalance is seen as a hindrance to increasing the manufacturing share of GDP and improving competitiveness.
The Economic Survey 2024, tabled in Parliament on July 22, said, “The significant increase in retail investors in the stock market calls for careful consideration. This is crucial because the possibility of overconfidence leading to speculation and the expectation of even greater returns, which might not align with the real market conditions, is a serious concern.”
Indian labour market indicators have improved in the last six years, with the unemployment rate decreasing to 3.2 per cent in 2022-23, the Economic Survey stated. Tax compliance gains, expenditure restraint, and digitisation help India achieve fine balance in govt’s fiscal management, the Economic Survey stated.
Economic Survey calls for State to let go its grip in areas where it does not have to free up its capacity and enhance capability. Power is a prized possession of governments; it can let go of at least some of it and enjoy the lightness it creates, the Economic Survey stated.
Sixty-five per cent of India’s fast-growing population is under 35, and many lack the skills needed by a modern economy. Estimates show that about 51.25 per cent of the youth is deemed employable, according to Economic Survey 2024.