Finance minister Nirmala Sitharaman presented the Economic Survey 2023 in the Parliament on Tuesday.
According to the Economic Survey, India’s real GDP growth for the next financial year is pegged at 6-6.8 per cent.
The survey stated that private consumption in H1 is highest since FY15 and this has led to a boost to production activity resulting in enhanced capacity utilisation across sectors.
The Capital Expenditure of Central Government and crowding in the private Capex led by strengthening of the balance sheets of the Corporates is one of the growth driver of the Indian economy in the current year.
Vikas Vasal, National Managing Partner – Tax, Grant Thornton Bharat, said, “The growth projections for the Indian economy provide comfort given the headwinds around global slowdown. The Budget is likely to build upon this momentum through policy reforms, consistent and predictable tax regime, measures to strengthen the investment eco-system including for start-ups and reduce compliances, disputes and litigation for businesses and individuals.”
The credit growth to the MSME sector was over 30.6 per cent on average during Jan-Nov 2022.
Economic Survey 2023 LIVE Updates
Retail inflation is back within RBI’s target range in November 2022, the survey said.
Indian Rupee performed well compared to other Emerging Market Economies in Apr-Dec2022.
Direct Tax collections for the period April-November 2022 remain buoyant.
Enhanced employment generation seen in the declining urban unemployment rate and in the faster net registration in Employee Provident Fund.
Economic growth to be boosted from the expansion of public digital platforms and measures to boost manufacturing output.
The Economic Survey is the official report card of the country’s economy tabled a day before the presentation of the Union Budget.
Earlier, reports also suggested that the economic survey is likely to peg GDP growth at 6-6.8% for 2023-24.
India’s CAD was 4.4% of GDP in the July-September quarter, higher than 2.2% a quarter ago and 1.3% a year ago, as rising commodity prices and a weak rupee increased the trade gap.
Meanwhile, the International Monetary Fund in its latest World Economic Outlook, raised its output growth estimate on emerging markets for this year.
It said that with projections now showing the economic slowdown in the region may have bottomed out in 2022, on the back of China reopening, a resilient India and unexpected growth in Russia.
Leading the growth charge in 2023, IMF said India continues to be seen growing over 6% this year and next, while the upward revision of China by 0.8 percentage point sets it on track for growth above 5% this year.
It said that inflation in India is expected to come down from 6.8 percent in the current fiscal year ending March 31 to 5 percent the next fiscal, and then drop further to 4 percent in 2024.
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