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

 Page 1


ECONOMIC SURVEY 2023-24 
 
PRESS INFORMATION BUREAU 
GOVERNMENT OF INDIA 
****** 
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 
 
Page 2


ECONOMIC SURVEY 2023-24 
 
PRESS INFORMATION BUREAU 
GOVERNMENT OF INDIA 
****** 
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 
 
New Delhi, 22
ND
 July 2024 
 
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 
Page 3


ECONOMIC SURVEY 2023-24 
 
PRESS INFORMATION BUREAU 
GOVERNMENT OF INDIA 
****** 
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 
 
New Delhi, 22
ND
 July 2024 
 
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


ECONOMIC SURVEY 2023-24 
 
PRESS INFORMATION BUREAU 
GOVERNMENT OF INDIA 
****** 
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 
 
New Delhi, 22
ND
 July 2024 
 
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 
GV A at current prices were 17.7 per cent, 27.6 per cent and 54.7 per cent respectively in FY24. 
GV A 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 GV A 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.  
Page 5


ECONOMIC SURVEY 2023-24 
 
PRESS INFORMATION BUREAU 
GOVERNMENT OF INDIA 
****** 
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 
 
New Delhi, 22
ND
 July 2024 
 
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 
GV A at current prices were 17.7 per cent, 27.6 per cent and 54.7 per cent respectively in FY24. 
GV A 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 GV A 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.