Summary of Economic Survey 2023-24: PIB | Indian Economy for UPSC CSE PDF Download

 Page 1


Ministry of Finance
INDIA’S REAL GDP PROJECTED TO GROW
BETWEEN 6.5–7 PER CENT IN 2024-25
SHOWING RESILIENCE, INDIA’S REAL GDP
GREW BY 8.2 PERCENT IN FY 24, EXCEEDING 8
PERCENT MARK IN THREE OUT OF FOUR
QUARTERS OF FY 24
SHARES OF AGRICULTURE, INDUSTRY AND
SERVICES SECTORS IN OVERALL GVA AT
CURRENT PRICES IN FY 24 WERE 17.7 PER
CENT, 27.6 PER CENT AND 54.7 PER CENT
RESPECTIVELY
MANUFACTURING SECTOR GROWS BY 9.9 PER
CENT IN FY24; CONSTRUCTION ACTIVITIES
ALSO REGISTER A GROWTH OF 9.9 PER CENT
RETAIL INFLATION DECLINES TO 5.4 PER CENT
IN FY24 AFTER AVERAGING AT 6.7 PERCENT IN
FY23
GROSS FIXED CAPITAL FORMATION (GFCF)
FROM PRIVATE NON-FINANCIAL
CORPORATION’S INCREASES BY 19.8 PER CENT
IN FY23, ACTS AS AN IMPORTANT DRIVER OF
GROWTH
Page 2


Ministry of Finance
INDIA’S REAL GDP PROJECTED TO GROW
BETWEEN 6.5–7 PER CENT IN 2024-25
SHOWING RESILIENCE, INDIA’S REAL GDP
GREW BY 8.2 PERCENT IN FY 24, EXCEEDING 8
PERCENT MARK IN THREE OUT OF FOUR
QUARTERS OF FY 24
SHARES OF AGRICULTURE, INDUSTRY AND
SERVICES SECTORS IN OVERALL GVA AT
CURRENT PRICES IN FY 24 WERE 17.7 PER
CENT, 27.6 PER CENT AND 54.7 PER CENT
RESPECTIVELY
MANUFACTURING SECTOR GROWS BY 9.9 PER
CENT IN FY24; CONSTRUCTION ACTIVITIES
ALSO REGISTER A GROWTH OF 9.9 PER CENT
RETAIL INFLATION DECLINES TO 5.4 PER CENT
IN FY24 AFTER AVERAGING AT 6.7 PERCENT IN
FY23
GROSS FIXED CAPITAL FORMATION (GFCF)
FROM PRIVATE NON-FINANCIAL
CORPORATION’S INCREASES BY 19.8 PER CENT
IN FY23, ACTS AS AN IMPORTANT DRIVER OF
GROWTH
WITH 4.1 LAKH RESIDENTIAL UNITS SOLD IN
THE TOP EIGHT CITIES,IN 2023 REAL ESTATE
WITNESSES 33 PER CENT Y-O-Y GROWTH,
HIGHEST SINCE 2013
FISCAL DEFICIT OF UNION GOVERNMENT
DOWN FROM 6.4 PER CENT OF GDP IN FY23 TO
5.6 PER CENT IN FY24
CAPITAL EXPENDITURE FOR FY24 STANDS AT
9.5 LAKH CRORE MARKING AN INCREASE OF
28.2 PER CENT ON Y-O-Y BASIS, AND 2.8 TIMES
THE LEVEL OF FY20
QUALITY OF SPENDING BY STATE
GOVERNMENTS IMPROVES AS GROSS FISCAL
DEFICIT WAS 8.6 PER CENT LOWER THAN
BUDGETED FIGURE OF 9.1 LAKH CRORE
GROSS NON-PERFORMING ASSETS (GNPA)
RATIO DECLINES TO 2.8 PER CENT IN MARCH
2024, A 12-YEAR LOW MARKING IMPROVEMENT
IN ASSET QUALITY OF BANKS
INDIA'S EXPORTS OF SERVICES REACHES A
NEW HIGH OF USD 341.1 BILLION IN FY24
Page 3


Ministry of Finance
INDIA’S REAL GDP PROJECTED TO GROW
BETWEEN 6.5–7 PER CENT IN 2024-25
SHOWING RESILIENCE, INDIA’S REAL GDP
GREW BY 8.2 PERCENT IN FY 24, EXCEEDING 8
PERCENT MARK IN THREE OUT OF FOUR
QUARTERS OF FY 24
SHARES OF AGRICULTURE, INDUSTRY AND
SERVICES SECTORS IN OVERALL GVA AT
CURRENT PRICES IN FY 24 WERE 17.7 PER
CENT, 27.6 PER CENT AND 54.7 PER CENT
RESPECTIVELY
MANUFACTURING SECTOR GROWS BY 9.9 PER
CENT IN FY24; CONSTRUCTION ACTIVITIES
ALSO REGISTER A GROWTH OF 9.9 PER CENT
RETAIL INFLATION DECLINES TO 5.4 PER CENT
IN FY24 AFTER AVERAGING AT 6.7 PERCENT IN
FY23
GROSS FIXED CAPITAL FORMATION (GFCF)
FROM PRIVATE NON-FINANCIAL
CORPORATION’S INCREASES BY 19.8 PER CENT
IN FY23, ACTS AS AN IMPORTANT DRIVER OF
GROWTH
WITH 4.1 LAKH RESIDENTIAL UNITS SOLD IN
THE TOP EIGHT CITIES,IN 2023 REAL ESTATE
WITNESSES 33 PER CENT Y-O-Y GROWTH,
HIGHEST SINCE 2013
FISCAL DEFICIT OF UNION GOVERNMENT
DOWN FROM 6.4 PER CENT OF GDP IN FY23 TO
5.6 PER CENT IN FY24
CAPITAL EXPENDITURE FOR FY24 STANDS AT
9.5 LAKH CRORE MARKING AN INCREASE OF
28.2 PER CENT ON Y-O-Y BASIS, AND 2.8 TIMES
THE LEVEL OF FY20
QUALITY OF SPENDING BY STATE
GOVERNMENTS IMPROVES AS GROSS FISCAL
DEFICIT WAS 8.6 PER CENT LOWER THAN
BUDGETED FIGURE OF 9.1 LAKH CRORE
GROSS NON-PERFORMING ASSETS (GNPA)
RATIO DECLINES TO 2.8 PER CENT IN MARCH
2024, A 12-YEAR LOW MARKING IMPROVEMENT
IN ASSET QUALITY OF BANKS
INDIA'S EXPORTS OF SERVICES REACHES A
NEW HIGH OF USD 341.1 BILLION IN FY24
FOREX RESERVES AS OF END OF MARCH 2024
SUFFICIENT TO COVER 11 MONTHS OF
PROJECTED IMPORTS
36.9 LAKH CRORE TRANSFERRED VIA DIRECT
BENEFIT TRANSFER SINCE ITS INCEPTION IN
2013
FEMALE LABOUR FORCE PARTICIPATION RATE
GROWS FROM 23.3 PER CENT IN 2017-18 TO 37
PER CENT IN 2022-23, MAINLY DUE TO RISING
PARTICIPATION OF RURAL WOMEN
Posted On: 22 JUL 2024 3:33PM by PIB Delhi
India’s real GDP is projected to grow between 6.5–7 per cent in 2024-25. The Indian economy recovered
swiftly from the pandemic, with its real GDP in FY24 being 20 per cent higher than the pre-COVID, FY20
levels. This was stated by the Economic Survey 2023-24 presented in Parliament today by the Union Minister
of Finance and Corporate Affairs Smt Nirmala Sitharaman.
The Survey points out that the domestic growth drivers have supported economic growth in FY24 despite
uncertain global economic performance. It also adds that during the decade ending FY20, India grew at an
average annual rate of 6.6 per cent, more or less reflecting the long-run growth prospects of the economy.
The Survey, however cautions that 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. This can also influence RBI’s monetary policy stance. The
global trade outlook for 2024 remains positive, with merchandise trade expected to pick up after registering a
contraction in volumes in 2023.
The Survey highlights that leveraging the initiatives taken by the government and capturing the untapped
potential in emerging markets; exports of business, consultancy and IT-enabled services can expand. Despite
the core inflation rate being around 3 per cent, the RBI, with one eye on the withdrawal of accommodation
and another on the US Fed, has kept interest rates unchanged for quite some time, and the anticipated easing
has been delayed.
The Economic Survey says that India’s economy showed resilience to a gamut of global and external
challenges as real GDP grew by 8.2 percent in FY 24, exceeding 8 percent mark in three out of four quarters
of FY 24, driven by stable consumption demand and steadily improving investment demand.
Page 4


Ministry of Finance
INDIA’S REAL GDP PROJECTED TO GROW
BETWEEN 6.5–7 PER CENT IN 2024-25
SHOWING RESILIENCE, INDIA’S REAL GDP
GREW BY 8.2 PERCENT IN FY 24, EXCEEDING 8
PERCENT MARK IN THREE OUT OF FOUR
QUARTERS OF FY 24
SHARES OF AGRICULTURE, INDUSTRY AND
SERVICES SECTORS IN OVERALL GVA AT
CURRENT PRICES IN FY 24 WERE 17.7 PER
CENT, 27.6 PER CENT AND 54.7 PER CENT
RESPECTIVELY
MANUFACTURING SECTOR GROWS BY 9.9 PER
CENT IN FY24; CONSTRUCTION ACTIVITIES
ALSO REGISTER A GROWTH OF 9.9 PER CENT
RETAIL INFLATION DECLINES TO 5.4 PER CENT
IN FY24 AFTER AVERAGING AT 6.7 PERCENT IN
FY23
GROSS FIXED CAPITAL FORMATION (GFCF)
FROM PRIVATE NON-FINANCIAL
CORPORATION’S INCREASES BY 19.8 PER CENT
IN FY23, ACTS AS AN IMPORTANT DRIVER OF
GROWTH
WITH 4.1 LAKH RESIDENTIAL UNITS SOLD IN
THE TOP EIGHT CITIES,IN 2023 REAL ESTATE
WITNESSES 33 PER CENT Y-O-Y GROWTH,
HIGHEST SINCE 2013
FISCAL DEFICIT OF UNION GOVERNMENT
DOWN FROM 6.4 PER CENT OF GDP IN FY23 TO
5.6 PER CENT IN FY24
CAPITAL EXPENDITURE FOR FY24 STANDS AT
9.5 LAKH CRORE MARKING AN INCREASE OF
28.2 PER CENT ON Y-O-Y BASIS, AND 2.8 TIMES
THE LEVEL OF FY20
QUALITY OF SPENDING BY STATE
GOVERNMENTS IMPROVES AS GROSS FISCAL
DEFICIT WAS 8.6 PER CENT LOWER THAN
BUDGETED FIGURE OF 9.1 LAKH CRORE
GROSS NON-PERFORMING ASSETS (GNPA)
RATIO DECLINES TO 2.8 PER CENT IN MARCH
2024, A 12-YEAR LOW MARKING IMPROVEMENT
IN ASSET QUALITY OF BANKS
INDIA'S EXPORTS OF SERVICES REACHES A
NEW HIGH OF USD 341.1 BILLION IN FY24
FOREX RESERVES AS OF END OF MARCH 2024
SUFFICIENT TO COVER 11 MONTHS OF
PROJECTED IMPORTS
36.9 LAKH CRORE TRANSFERRED VIA DIRECT
BENEFIT TRANSFER SINCE ITS INCEPTION IN
2013
FEMALE LABOUR FORCE PARTICIPATION RATE
GROWS FROM 23.3 PER CENT IN 2017-18 TO 37
PER CENT IN 2022-23, MAINLY DUE TO RISING
PARTICIPATION OF RURAL WOMEN
Posted On: 22 JUL 2024 3:33PM by PIB Delhi
India’s real GDP is projected to grow between 6.5–7 per cent in 2024-25. The Indian economy recovered
swiftly from the pandemic, with its real GDP in FY24 being 20 per cent higher than the pre-COVID, FY20
levels. This was stated by the Economic Survey 2023-24 presented in Parliament today by the Union Minister
of Finance and Corporate Affairs Smt Nirmala Sitharaman.
The Survey points out that the domestic growth drivers have supported economic growth in FY24 despite
uncertain global economic performance. It also adds that during the decade ending FY20, India grew at an
average annual rate of 6.6 per cent, more or less reflecting the long-run growth prospects of the economy.
The Survey, however cautions that 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. This can also influence RBI’s monetary policy stance. The
global trade outlook for 2024 remains positive, with merchandise trade expected to pick up after registering a
contraction in volumes in 2023.
The Survey highlights that leveraging the initiatives taken by the government and capturing the untapped
potential in emerging markets; exports of business, consultancy and IT-enabled services can expand. Despite
the core inflation rate being around 3 per cent, the RBI, with one eye on the withdrawal of accommodation
and another on the US Fed, has kept interest rates unchanged for quite some time, and the anticipated easing
has been delayed.
The Economic Survey says that India’s economy showed resilience to a gamut of global and external
challenges as real GDP grew by 8.2 percent in FY 24, exceeding 8 percent mark in three out of four quarters
of FY 24, driven by stable consumption demand and steadily improving investment demand.
The Survey underlines that the shares of the agriculture, industry and services sectors in overall GVA at
current prices were 17.7 per cent, 27.6 per cent and 54.7 per cent respectively in FY24. GVA in the
agriculture sector continued to grow, albeit at a slower pace, as the erratic weather patterns during the year
and an uneven spatial distribution of the monsoon in 2023 impacted overall output.
Within the industrial sector, manufacturing GVA shrugged off a disappointing FY23 and grew by 9.9 per cent
in FY24, as manufacturing activities benefitted from reduced input prices while catering to stable domestic
demand. Similarly, construction activities displayed increased momentum and registered a growth of 9.9 per
cent in FY24 due to the infrastructure build out and buoyant commercial and residential real estate demand.
Various high-frequency indicators reflect the growth in the services sector. Both Goods and Services Tax
(GST) collections and the issuance of e-way bills, reflecting wholesale and retail trade, demonstrated double-
digit growth in FY24. Financial and professional services have been a major driver of growth post the
pandemic, the survey added.
Gross Fixed Capital Formation (GFCF) continues to emerge as an important driver of growth. GFCF by
private non-financial corporations increased by 19.8 per cent in FY23. There are early signs that the
momentum in private capital formation has been sustained in FY24. As per data provided by Axis Bank
Research, private investment across a consistent set of over 3,200 listed and unlisted non-financial firms has
grown by 19.8 per cent in FY24.
Apart from private corporations, households have also been at the forefront of the capital formation process.
In 2023, residential real estate sales in India were at their highest since 2013, witnessing a 33 per cent YoY
growth, with a total sale of 4.1 lakh units in the top eight cities.
With cleaner balance sheets and adequate capital buffers, the banking and financial sector is well-positioned
to cater to the growing financing needs of investment demand. Credit disbursal by scheduled commercial
banks (SCBs) to industrial micro, small and medium enterprises (MSMEs) and services continues to grow in
double digits despite a higher base. Similarly, personal loans for housing have surged, corresponding to the
increase in housing demand.
The Survey states that despite global supply chain disruptions and adverse weather conditions, domestic
inflationary pressures moderated in FY24. After averaging 6.7 per cent in FY23, retail inflation declined to
Page 5


Ministry of Finance
INDIA’S REAL GDP PROJECTED TO GROW
BETWEEN 6.5–7 PER CENT IN 2024-25
SHOWING RESILIENCE, INDIA’S REAL GDP
GREW BY 8.2 PERCENT IN FY 24, EXCEEDING 8
PERCENT MARK IN THREE OUT OF FOUR
QUARTERS OF FY 24
SHARES OF AGRICULTURE, INDUSTRY AND
SERVICES SECTORS IN OVERALL GVA AT
CURRENT PRICES IN FY 24 WERE 17.7 PER
CENT, 27.6 PER CENT AND 54.7 PER CENT
RESPECTIVELY
MANUFACTURING SECTOR GROWS BY 9.9 PER
CENT IN FY24; CONSTRUCTION ACTIVITIES
ALSO REGISTER A GROWTH OF 9.9 PER CENT
RETAIL INFLATION DECLINES TO 5.4 PER CENT
IN FY24 AFTER AVERAGING AT 6.7 PERCENT IN
FY23
GROSS FIXED CAPITAL FORMATION (GFCF)
FROM PRIVATE NON-FINANCIAL
CORPORATION’S INCREASES BY 19.8 PER CENT
IN FY23, ACTS AS AN IMPORTANT DRIVER OF
GROWTH
WITH 4.1 LAKH RESIDENTIAL UNITS SOLD IN
THE TOP EIGHT CITIES,IN 2023 REAL ESTATE
WITNESSES 33 PER CENT Y-O-Y GROWTH,
HIGHEST SINCE 2013
FISCAL DEFICIT OF UNION GOVERNMENT
DOWN FROM 6.4 PER CENT OF GDP IN FY23 TO
5.6 PER CENT IN FY24
CAPITAL EXPENDITURE FOR FY24 STANDS AT
9.5 LAKH CRORE MARKING AN INCREASE OF
28.2 PER CENT ON Y-O-Y BASIS, AND 2.8 TIMES
THE LEVEL OF FY20
QUALITY OF SPENDING BY STATE
GOVERNMENTS IMPROVES AS GROSS FISCAL
DEFICIT WAS 8.6 PER CENT LOWER THAN
BUDGETED FIGURE OF 9.1 LAKH CRORE
GROSS NON-PERFORMING ASSETS (GNPA)
RATIO DECLINES TO 2.8 PER CENT IN MARCH
2024, A 12-YEAR LOW MARKING IMPROVEMENT
IN ASSET QUALITY OF BANKS
INDIA'S EXPORTS OF SERVICES REACHES A
NEW HIGH OF USD 341.1 BILLION IN FY24
FOREX RESERVES AS OF END OF MARCH 2024
SUFFICIENT TO COVER 11 MONTHS OF
PROJECTED IMPORTS
36.9 LAKH CRORE TRANSFERRED VIA DIRECT
BENEFIT TRANSFER SINCE ITS INCEPTION IN
2013
FEMALE LABOUR FORCE PARTICIPATION RATE
GROWS FROM 23.3 PER CENT IN 2017-18 TO 37
PER CENT IN 2022-23, MAINLY DUE TO RISING
PARTICIPATION OF RURAL WOMEN
Posted On: 22 JUL 2024 3:33PM by PIB Delhi
India’s real GDP is projected to grow between 6.5–7 per cent in 2024-25. The Indian economy recovered
swiftly from the pandemic, with its real GDP in FY24 being 20 per cent higher than the pre-COVID, FY20
levels. This was stated by the Economic Survey 2023-24 presented in Parliament today by the Union Minister
of Finance and Corporate Affairs Smt Nirmala Sitharaman.
The Survey points out that the domestic growth drivers have supported economic growth in FY24 despite
uncertain global economic performance. It also adds that during the decade ending FY20, India grew at an
average annual rate of 6.6 per cent, more or less reflecting the long-run growth prospects of the economy.
The Survey, however cautions that 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. This can also influence RBI’s monetary policy stance. The
global trade outlook for 2024 remains positive, with merchandise trade expected to pick up after registering a
contraction in volumes in 2023.
The Survey highlights that leveraging the initiatives taken by the government and capturing the untapped
potential in emerging markets; exports of business, consultancy and IT-enabled services can expand. Despite
the core inflation rate being around 3 per cent, the RBI, with one eye on the withdrawal of accommodation
and another on the US Fed, has kept interest rates unchanged for quite some time, and the anticipated easing
has been delayed.
The Economic Survey says that India’s economy showed resilience to a gamut of global and external
challenges as real GDP grew by 8.2 percent in FY 24, exceeding 8 percent mark in three out of four quarters
of FY 24, driven by stable consumption demand and steadily improving investment demand.
The Survey underlines that the shares of the agriculture, industry and services sectors in overall GVA at
current prices were 17.7 per cent, 27.6 per cent and 54.7 per cent respectively in FY24. GVA in the
agriculture sector continued to grow, albeit at a slower pace, as the erratic weather patterns during the year
and an uneven spatial distribution of the monsoon in 2023 impacted overall output.
Within the industrial sector, manufacturing GVA shrugged off a disappointing FY23 and grew by 9.9 per cent
in FY24, as manufacturing activities benefitted from reduced input prices while catering to stable domestic
demand. Similarly, construction activities displayed increased momentum and registered a growth of 9.9 per
cent in FY24 due to the infrastructure build out and buoyant commercial and residential real estate demand.
Various high-frequency indicators reflect the growth in the services sector. Both Goods and Services Tax
(GST) collections and the issuance of e-way bills, reflecting wholesale and retail trade, demonstrated double-
digit growth in FY24. Financial and professional services have been a major driver of growth post the
pandemic, the survey added.
Gross Fixed Capital Formation (GFCF) continues to emerge as an important driver of growth. GFCF by
private non-financial corporations increased by 19.8 per cent in FY23. There are early signs that the
momentum in private capital formation has been sustained in FY24. As per data provided by Axis Bank
Research, private investment across a consistent set of over 3,200 listed and unlisted non-financial firms has
grown by 19.8 per cent in FY24.
Apart from private corporations, households have also been at the forefront of the capital formation process.
In 2023, residential real estate sales in India were at their highest since 2013, witnessing a 33 per cent YoY
growth, with a total sale of 4.1 lakh units in the top eight cities.
With cleaner balance sheets and adequate capital buffers, the banking and financial sector is well-positioned
to cater to the growing financing needs of investment demand. Credit disbursal by scheduled commercial
banks (SCBs) to industrial micro, small and medium enterprises (MSMEs) and services continues to grow in
double digits despite a higher base. Similarly, personal loans for housing have surged, corresponding to the
increase in housing demand.
The Survey states that despite global supply chain disruptions and adverse weather conditions, domestic
inflationary pressures moderated in FY24. After averaging 6.7 per cent in FY23, retail inflation declined to
5.4 per cent in FY24. This has been due to the combination of measures undertaken by the Government and
the RBI. The Union Government undertook prompt measures such as open market sales, retailing in specified
outlets, timely imports, reduced the prices of Liquified Petroleum Gas (LPG) cylinders and implemented a cut
in petrol and diesel prices. The RBI raised policy rates by a cumulative 250 bps between May 2022 and
February 2023.
The Survey says, against the global trend of widening fiscal deficit and increasing debt burden, India has
remained on the course of fiscal consolidation. The fiscal deficit of the Union Government has been brought
down from 6.4 per cent of GDP in FY23 to 5.6 per cent of GDP in FY24, according to provisional actuals
(PA) data released by the Office of Controller General of Accounts (CGA).
The growth in gross tax revenue (GTR) was estimated to be 13.4 per cent in FY24, translating into tax
revenue buoyancy of 1.4. The growth was led by a 15.8 per cent growth in direct taxes and a 10.6 per cent
increase in indirect taxes over FY23.
The Survey adds that broadly, 55 per cent of GTR accrued from direct taxes and the remaining 45 per cent
from indirect taxes. The increase in indirect taxes in FY24 was mainly driven by a 12.7 per cent growth in
GST collection. The increase in GST collection and E-way bill generation reflects increased compliance over
time.