Economic Survey 2024 Out: Key Takeaways On India's Financial Health, GDP Growth, Inflation

Union Finance Minister Nirmala Sitharaman tabled the Economic Survey 2023-2024 in the Lok Sabha. The survey notes that India's real GDP is expected to grow between 6.5 and 7 percent in 2024-25, aligning with the International Monetary Fund's estimate of 7 percent. The survey states, "The survey conservatively projects a real GDP growth of 6.5-7 percent, with risks evenly balanced, cognizant of the fact that the market expectations are on the higher side."
Inflation

The Economic Survey highlights that core inflation remained sticky due to services inflation and a strong labour market, especially in most Asian economies.

Regarding retail inflation, it states, "inflationary pressures stoked by global troubles, supply chain disruptions, and vagaries of monsoons have been deftly managed by administrative and monetary policy responses. After averaging 6.7 percent in FY23, retail inflation declined to 5.4 percent in FY24."

Capital Expenditure

On the government's push towards capital expenditure, the survey mentions, "the government's thrust on capex and sustained momentum in private investment has boosted capital formation growth. Gross Fixed Capital Formation increased by 9 percent in real terms in 2023-24."

Indian Economy

Discussing the broader Indian economy, the survey states, "India's calibrated response to the pandemic on the economic front included three salient components. The first has been the focus on public spending on infrastructure, which kept the economy afloat by creating a strong demand for jobs and industrial output and triggered a lagged yet vigorous private investment response. Stronger balance sheets of the financial and non-financial private sector helped, aided by a decade of supporting initiatives by the Government and the Reserve Bank of India. The second has been partly a natural response of business enterprise and public administration amidst adversities."