Economic Survey 2023-24 Highlights

The Economic Survey offers a summary of the nation's economic progress throughout the previous year and forecasts the economic challenges for the forthcoming year. The Economic Division of the Department of Economic Affairs in the Ministry of Finance prepares this survey. Initially, from 1950-51, the Economic Survey was presented along with the Budget. After 1960, the tradition of presenting it a day before the Budget began.

Key Highlights of the Economic Survey 2023-24:

Global economic growth was 3.2 per cent in 2023, with divergent growth patterns due to domestic issues, geopolitical conflicts, and monetary policy tightening. Despite external challenges, India's real GDP grew by 8.2 per cent in FY24, driven by strong capital expenditure and private investment.

• Capital Formation: Gross Fixed Capital Formation increased by 9 per cent in real terms in 2023-24.
• Inflation: Retail inflation declined to 5.4 per cent in FY24, from 6.7 per cent in FY23.
• Fiscal Balance: Improved due to tax compliance gains, expenditure restraint, and digitisation.
• External Balance: Current Account Deficit improved to 0.7 per cent of GDP in FY24, from 2.0 per cent in FY23, aided by strong services exports.
• Banking Sector: Showcased strong performance with broad-based credit growth and low NPAs.
• Stock Market: Significant surge in market capitalization, making India’s ratio to GDP the fifth largest globally.
• Financial Inclusion: Focus on digital payments and direct benefit transfers.
• Short-Term Outlook: Inflation projected to fall to 4.5% in FY25 and 4.1% in FY26.
• Long-Term Outlook: Emphasis on modern storage, price monitoring, and increasing domestic production of essential food items.
• External Sector: Strong despite global headwinds, with improved export diversification and services exports.