FM tables Economic Survey 2023-24

July 22, 2024: The Economic Survey 2023-24 along with the statistical appendix was presented in the Lok Sabha today by finance minister Nirmala Sitharaman. The Economic Survey is an annual document that is presented by the government ahead of the Union Budget to review the economy’s state. 

The integrated and sustainable development in rural India is at the heart of the Government’s strategy. The focus is on holistic economic betterment through decentralised planning, better access to credit, empowerment of women, basic housing and education, among others, mentioned the Economic Survey 2024.

Enhancing the quality of life in rural India

The Economic Survey stated that quality of life in rural areas has progressed in terms of basic amenities, education, health and financial inclusion. In terms of basic amenities, 11.57 crore toilets were constructed under the Swachh Bharat Mission- Grameen and 11.7 crore households were provided with tap water connection under Jal Jeevan Mission as of July 10, 2024. The Survey reports that in the PM-AWAS-Gramin, 2.63 crore houses were constructed for the poor in last nine years (as of July 10, 2024).

In addition, 35.7 crore RuPay debit cards have been issued under Pradhan Mantri Jan Dhan Yojana (PMJDY) as of June 26, 2024  leading to enhanced financial inclusion in rural areas. In the health sector, 1.58 lakh sub centres and 24,935 primary health centres have resulted in enhancement of quality of life in the rural areas.

Strengthening and modernising the safety net of MGNREGS

The Economic Survey 2023-24 observed that to ensure elimination of leakages in MGNREGS (Mahatma Gandhi National Rural Employment Guarantee Scheme), geotagging before, during and after the work is being done and 99.9% payments are through National Electronic Management System.

The survey stated that MGNREGS has made significant progress in terms of person-days generated and women participation rate with person-days generated increasing from 265.4 crore in 2019-20 to 309.2 crore in 2023-24 (as per MIS) and women participation rate increasing from 54.8% in 2019-20 to 58.9% in 2023-24.

The Economic Survey also points out that MGNREGS has evolved into an asset creation programme for sustainable livelihood diversification, as seen in the rise in the share of individual beneficiary ‘works on individual land’ from 9.6% of total completed works in FY14 to 73.3%  in FY24.

Nurturing rural entrepreneurship at the grassroots

The Government continues to provide a fillip to rural entrepreneurship by implementing a bouquet of vibrant schematic interventions with a distinct focus on seamless access to affordable finance and generating lucrative market opportunities. Schemes and programmes like Deendayal Antyodaya Yojana- National Rural Livelihood Mission (DAY-NRLM), Lakhpati Didis initiative, and Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY) have enhanced livelihood generation and easy access to finance in rural areas.

Digitisation initiatives for rural governance

Digitisation initiatives like e-Gram SWARAJ, SVAMITVA Scheme, Bhu-Aadhaar have improved rural governance. Under SVAMITVA Scheme, drone survey of  2.90 lakh villages has been completed and 1.66 crore property cards have been prepared. The Economic Survey points out that 200% increase in rural internet subscriptions between 2015 and 2021 can reduce the distance between the village and the administrative headquarters leading to regional developments.

Economic Survey 2023-24 key highlights

• According to a report by the finance ministry, India’s GDP is projected to grow between 6.5-7% in 2024-25. 
• As per the survey, the financial sector for India is looking bright this year. However, India may see slow growth in private investments across key sectors, the survey mentioned. 
• Economic growth in FY24 was supported by domestic growth drivers in spite of uncertain global performance, mentioned the survey. The various policies in India steered through the challenges that ensured price stability.  
• In India’s growth story, capital markets play a crucial role. The survey highlighted the escalation in geopolitical conflicts and its effect on RBI’s monetary policy stance.  
• The survey mentioned that tax compliance gains, expenditure restraint and digitisation helped India achieve fine balance in government’s fiscal management. 
• As financial sector undergoes critical transformation, it must brace for likely vulnerabilities originating globally or locally. 

• There is an uncertainty over the impact of AI casts huge pall of uncertainty with regard to impact on workers across all skill levels. 
• The survey mentioned that while the short-term inflation outlook is benign, India faces persistent deficit in pulses and consequent price pressures. 
• Finally, increased FDI inflows from China can help India enhance participation in global supply chain, boost exports. 

Before the start of the Budget session at the parliament, PM Narendra Modi, said, “This Budget will set the direction of the next five years of the current government and will lay a strong foundation for the dream of Viksit Bharat by 2047”. The Union Budget will be presented by finance minister Nirmala Sitharaman on July 23, 2024.

Industry reaction

Prashant Sharma, president, NAREDCO Maharashtra

We commend the comprehensive Economic Survey 2024 presented by Finance Minister Nirmala Sitharaman. The survey highlights significant strides in infrastructure development, which is crucial for sustained economic growth. The focus on enhancing urban infrastructure, particularly in Tier-II and Tier-III cities, aligns perfectly with the real estate sector’s goals of promoting balanced regional development and addressing urban migration challenges. The survey’s insights on sustainable and green construction practices resonate with our commitment to environmentally responsible development.

The survey also highlights a pivotal shift in the economic landscape with healthier corporate and bank balance sheets poised to bolster private investment. This positive trajectory is mirrored in the residential real estate market, where we are witnessing a significant uptick in household sector capital formation.

Moreover, the projected economic growth and improvement in consumer confidence will positively impact the housing market, encouraging more homebuyers to invest in real estate. We are optimistic that the policies and initiatives outlined in the Economic Survey will pave the way for a robust and resilient real estate sector, contributing significantly to the nation’s economic prosperity.

Anshuman Magazine, chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE

India’s economic performance in FY24 surpassed expectations, registering a robust growth rate of 8.2%. This momentum is noteworthy, considering three out of the past four quarters exceeded the 8% growth mark. The Economic Survey for FY25 projects a growth rate range of 6.5-7%, further solidifying India’s strong macroeconomic fundamentals. Inflation is also anticipated to moderate to around 4.5%, reflecting a well-balanced economic environment. The survey acknowledges the real estate sector, particularly the residential segment, as a significant driver of private investment. The survey emphasizes the importance of continued collaboration between central and state governments, along with the private sector, to sustain this momentum. India’s post-pandemic recovery has been orderly and expansive, a testament to the underlying resilience of the economy. Looking ahead to FY25, several indicators such as robust private consumption, increased bank lending activity, and improved corporate capital expenditure indicate towards a good year ahead.