The Economic Survey for 2023-24 emphasises the urgency of addressing inequality and unemployment
The Economic Survey for 2023-24 released on the eve of the Union Budget is optimistic about the Indian story of growth and development; however, it also indicates the areas of concern on which it suggests the Central Government to act on priority. It is customary to have the Economic Survey just before the budget as it sets the tone of the budget and puts things in perspective. This year round it is buoyant on growth and pegs India’s GDP growth at 6.5 -7.0 % in this fiscal year. The Economic Survey, a comprehensive report that reviews the developments in the Indian economy over the past year, forecasts robust growth in various sectors. This optimism is grounded in several factors, including strong domestic consumption, increased investments, and favourable government policies. Interestingly this is despite the fact that most economies around the world are struggling to attain much lower levels of GDP. The survey underscores the Government's focus on infrastructure as a critical driver of growth. Ongoing projects in road, rail, and port development are expected to boost connectivity and efficiency, facilitating smoother trade and commerce. Besides, the rapid expansion of the digital economy is another significant area of growth. Though open to criticism, the Survey maintains that the 'Make in India' initiative continues to show promising results.
The survey notes that boosting exports, particularly in high-growth industries such as pharmaceutical, electronics, and textiles, could significantly enhance India's global economic standing. The Survey also talks about the problem area of the Indian economy. Agriculture, the backbone of the Indian economy, remains a priority. The survey recommends further reforms to increase productivity and ensure sustainable growth in this sector. Innovations in technology and better access to markets are crucial to achieving these goals. The Economic Survey rightly numerates various factors which could pull down the economy and be an impediment in the national growth. The biggest stumbling block is of course inflation. The survey suggests a balanced approach to monetary policy to manage inflation without stifling growth. Unemployment yet another constraint needs to be addressed on priority. The survey calls for policies that support skill development and entrepreneurship to harness the potential of the burgeoning young population. PM Modi reaffirmed the government's commitment to fostering an environment conducive to growth. Indeed, Finance Minister Nirmala Sitharaman's Budget for 2024-25 incorporates several suggestions made by the Economic Survey. Setting a roadmap for the third term of Modi Government, Union Finance Minister has defined nine priorities. These are agriculture, employment, human development, energy security, manufacturing, innovation, infrastructure and next generation reforms. These would indeed go a long way in reducing unemployment, curbing inflation and giving economy a push that would be inclusive and sustainable.
