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Page 1 Economic Survey 2022-23 Government of India Ministry of Finance Department of Economic Affairs Economic Division North Block New Delhi-110001 January, 2023 Page 2 Economic Survey 2022-23 Government of India Ministry of Finance Department of Economic Affairs Economic Division North Block New Delhi-110001 January, 2023 Page 3 Economic Survey 2022-23 Government of India Ministry of Finance Department of Economic Affairs Economic Division North Block New Delhi-110001 January, 2023 CONTENTS vii Preface xi Acknowledgment xiii Abbreviations xxxi List of Tables xxxiii List of charts xli List of boxes Chapter No. Page No. Name of the Chapter 1 State of the Economy 2022-23: Recovery Complete 03 The Global Economy Battles Through a Unique Set of Challenges 09 Macroeconomic and Growth Challenges in the Indian Economy 12 India’s Economic Resilience and Growth Drivers 19 India’s Inclusive Growth 21 Outlook: 2023-24 2 India’s Medium-term Growth Outlook: With Optimism and Hope 24 Introduction 25 Product and Capital Market Reforms 28 Reforms for New India- Sabka Saath Sabka Vikaas 36 Returns to the Economic and Structural Reforms after 2014 39 Growth Magnets in this Decade (2023-2030) 3 Fiscal Developments: Revenue Relish 42 Introduction 42 Developments in Union Government Finances 54 Overview of State Government Finances 61 Debt Profile of the Government 67 Conclusion 4 Monetary Management and Financial Intermediation: A Good Year 79 Monetary Developments 82 Liquidity Conditions 83 Monetary Policy Transmission 84 Developments in the G-sec Market 85 Banking Sector 88 Credit Growth Aided by a Sound Banking System and Deleveraged Corporate Sector 89 Non-Banking Financial Companies Continue to Recover 91 Progress Made Under the Insolvency and Bankruptcy Code 94 Development in Capital Markets 102 Other Developments 106 IFSC-GIFT City Page 4 Economic Survey 2022-23 Government of India Ministry of Finance Department of Economic Affairs Economic Division North Block New Delhi-110001 January, 2023 CONTENTS vii Preface xi Acknowledgment xiii Abbreviations xxxi List of Tables xxxiii List of charts xli List of boxes Chapter No. Page No. Name of the Chapter 1 State of the Economy 2022-23: Recovery Complete 03 The Global Economy Battles Through a Unique Set of Challenges 09 Macroeconomic and Growth Challenges in the Indian Economy 12 India’s Economic Resilience and Growth Drivers 19 India’s Inclusive Growth 21 Outlook: 2023-24 2 India’s Medium-term Growth Outlook: With Optimism and Hope 24 Introduction 25 Product and Capital Market Reforms 28 Reforms for New India- Sabka Saath Sabka Vikaas 36 Returns to the Economic and Structural Reforms after 2014 39 Growth Magnets in this Decade (2023-2030) 3 Fiscal Developments: Revenue Relish 42 Introduction 42 Developments in Union Government Finances 54 Overview of State Government Finances 61 Debt Profile of the Government 67 Conclusion 4 Monetary Management and Financial Intermediation: A Good Year 79 Monetary Developments 82 Liquidity Conditions 83 Monetary Policy Transmission 84 Developments in the G-sec Market 85 Banking Sector 88 Credit Growth Aided by a Sound Banking System and Deleveraged Corporate Sector 89 Non-Banking Financial Companies Continue to Recover 91 Progress Made Under the Insolvency and Bankruptcy Code 94 Development in Capital Markets 102 Other Developments 106 IFSC-GIFT City 109 Developments in the Insurance Market 113 Pension Sector 116 Outlook 5 Prices and Inflation: Successful T ight-Rope W alking 118 Introduction 120 Domestic Retail Inflation 129 Domestic Wholesale Price Inflation 133 Fuel Price Inflation: Declining Global Crude Oil Prices 134 Conver gence of WPI and CPI Inflation 137 Falling Inflationary Expectation 138 Monetary Policy Measures for Price Stability 139 Housing Prices: Recovering Housing Market after the Pandemic 142 Keeping Check on Pharmaceutical Prices 142 Conclusion 6 Social Infrastructure and Employment: Big Tent 146 Introduction 147 Social Sector Expenditure Keeping Pace with Growing Importance of the Sector 149 Improving Human Development Parameters 151 Transformation of Aspirational Districts Programme 153 Progressing Labour Reform Measures 155 Aadhaar: The Many Achievements of the Unique Identity 157 Improving Employment Trends 174 Ensuring Quality Education for all 182 Equipping the Workforce with Employable Skills and Knowledge in Mission Mode 185 Quality and Affordable Health for all 199 Social Protection for the Rainy Day 200 Development of India’s Aspiring Rural Economy 212 Direct Benefit T ransfer: a Game Changer 213 Enhancing Rural Governance for Inclusive Growth 215 Conclusion and Way Forward 7 Climate Change and Environment: Preparing to Face the Future 217 Introduction 221 Progress on India’s Climate Action 231 Finance for Sustainable Development 234 Major Decisions at COP 27 235 India’s Initiatives at the International Stage 236 Initiatives Related to other Environmental Issues 242 Conclusion 8 Agriculture & Food Management: From Food Security to Nutritional Security 243 Introduction 245 Record Production of Foodgrains Page 5 Economic Survey 2022-23 Government of India Ministry of Finance Department of Economic Affairs Economic Division North Block New Delhi-110001 January, 2023 CONTENTS vii Preface xi Acknowledgment xiii Abbreviations xxxi List of Tables xxxiii List of charts xli List of boxes Chapter No. Page No. Name of the Chapter 1 State of the Economy 2022-23: Recovery Complete 03 The Global Economy Battles Through a Unique Set of Challenges 09 Macroeconomic and Growth Challenges in the Indian Economy 12 India’s Economic Resilience and Growth Drivers 19 India’s Inclusive Growth 21 Outlook: 2023-24 2 India’s Medium-term Growth Outlook: With Optimism and Hope 24 Introduction 25 Product and Capital Market Reforms 28 Reforms for New India- Sabka Saath Sabka Vikaas 36 Returns to the Economic and Structural Reforms after 2014 39 Growth Magnets in this Decade (2023-2030) 3 Fiscal Developments: Revenue Relish 42 Introduction 42 Developments in Union Government Finances 54 Overview of State Government Finances 61 Debt Profile of the Government 67 Conclusion 4 Monetary Management and Financial Intermediation: A Good Year 79 Monetary Developments 82 Liquidity Conditions 83 Monetary Policy Transmission 84 Developments in the G-sec Market 85 Banking Sector 88 Credit Growth Aided by a Sound Banking System and Deleveraged Corporate Sector 89 Non-Banking Financial Companies Continue to Recover 91 Progress Made Under the Insolvency and Bankruptcy Code 94 Development in Capital Markets 102 Other Developments 106 IFSC-GIFT City 109 Developments in the Insurance Market 113 Pension Sector 116 Outlook 5 Prices and Inflation: Successful T ight-Rope W alking 118 Introduction 120 Domestic Retail Inflation 129 Domestic Wholesale Price Inflation 133 Fuel Price Inflation: Declining Global Crude Oil Prices 134 Conver gence of WPI and CPI Inflation 137 Falling Inflationary Expectation 138 Monetary Policy Measures for Price Stability 139 Housing Prices: Recovering Housing Market after the Pandemic 142 Keeping Check on Pharmaceutical Prices 142 Conclusion 6 Social Infrastructure and Employment: Big Tent 146 Introduction 147 Social Sector Expenditure Keeping Pace with Growing Importance of the Sector 149 Improving Human Development Parameters 151 Transformation of Aspirational Districts Programme 153 Progressing Labour Reform Measures 155 Aadhaar: The Many Achievements of the Unique Identity 157 Improving Employment Trends 174 Ensuring Quality Education for all 182 Equipping the Workforce with Employable Skills and Knowledge in Mission Mode 185 Quality and Affordable Health for all 199 Social Protection for the Rainy Day 200 Development of India’s Aspiring Rural Economy 212 Direct Benefit T ransfer: a Game Changer 213 Enhancing Rural Governance for Inclusive Growth 215 Conclusion and Way Forward 7 Climate Change and Environment: Preparing to Face the Future 217 Introduction 221 Progress on India’s Climate Action 231 Finance for Sustainable Development 234 Major Decisions at COP 27 235 India’s Initiatives at the International Stage 236 Initiatives Related to other Environmental Issues 242 Conclusion 8 Agriculture & Food Management: From Food Security to Nutritional Security 243 Introduction 245 Record Production of Foodgrains 246 MSP to Ensure Returns Over the Cost of Production 246 Enhanced Access to Agricultural Credit 247 Farm Mechanisation- Key to Improving Productivity 247 Chemical-free India: Organic and Natural Farming 248 Other Important Initiatives in Agriculture 252 Allied Sectors: Animal Husbandry, Dairying and Fisheries Catching up in Recent Years 253 Sahakar-Se- Samriddhi: From Cooperation to Prosperity 255 Food Processing Sector-The Sunrise Sector 256 Food Security- Social & Legal Commitment to the People of the Nation 258 Conclusion 9 Industry: Steady Recovery 261 Introduction 262 Demand Stimulus to Industrial Growth 265 Supply Response of Industry 269 Robust Growth in Bank Credit to Industry 270 Resilient FDI Inflow in Manufacturing Sector 272 Industry Groups and their Challenges 284 India’s Prospects as a Key Player in the Global Value Chain 291 Conclusion and Outlook 10 Services: Source of Strength 293 Introduction 294 Trends in High-Frequency Indicators 297 Major Services: Sub-Sector-Wise Performance 310 Outlook 11 External Sector: Watchful and Hopeful 312 Introduction 313 T rade Helping India Reap the Benefits of Globalised W orld 326 Balance of Payments in Challenging Times 333 Exchange Rates Moving in T andem with Global Developments 335 International Investment Position: A Reflection of India’ s Financial Soundness 336 Safe and Sound External Debt Situation 339 Outlook for the External Sector Caution Amidst Global Headwinds 12 Physical and Digital Infrastructure: Lifting Potential Growth 343 Introduction 345 Government’s Vision and Approaches to Infrastructure Development in India 352 Developments in Physical Infrastructure Sectors 360 Developments in Digital Infrastructure 371 Conclusion/OutlookRead More
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