Economic Survey 2023-24 Highlights

1. State of the Economy: Strong Growth in FY24

• Real GDP Growth Projection for FY25: Conservatively projected at 6.5-7%, with balanced risks.
• Real GDP Growth in FY24: 8.2%, exceeding 8% in three out of four quarters.
• Industrial Growth Rate: 9.5%, supporting overall economic growth.
• Retail Inflation in FY24: 5.4%, down from 6.7% in FY23.
• Current Account Deficit (CAD): 0.7% of GDP in FY24, improvement from 2.0% in FY23.
• Revenue Collection: 55% from direct taxes and 45% from indirect taxes.
• Post-Pandemic Recovery: FY24 real GDP was 20% higher than FY20 levels.

2. Monetary Management and Financial Intermediation

• Banking and Financial Sector Performance in FY24: Stellar performance with financial stability.
• RBI Policy Rate: Repo rate remained at 6.5%.
• Credit Growth: Scheduled Commercial Banks credit disbursal grew by 20.2% to ₹164.3 lakh crore.
• Agriculture and Allied Sectors Credit Growth: Double-digit growth in FY24.
• Primary Capital Markets: Facilitated capital formation of ₹10.9 lakh crore in FY24.

3. Prices and Inflation Control

• Retail Inflation in FY24: Maintained at 5.4%, the lowest level since the pandemic.
• Fuel Inflation: Remained low due to price cuts on LPG, petrol, and diesel.
• Food Inflation: 7.5% in FY24 due to adverse weather events and supply disruptions.
• RBI’s Inflation Projection: Expected to fall to 4.5% in FY25 and 4.1% in FY26.

4. External Sector: Stability Amidst Growth

• External Sector in FY24: Strong despite global geopolitical challenges.
• Services Exports: Grew by 4.9% to $341.1 billion.
• India’s Global Market Share: 1.8% in merchandise exports.
• Top Remittance Recipient: India received $120 billion in remittances in 2023.
• Current Account Deficit (CAD): Improved to 0.7% of GDP.
• 'Poshan Bhi, Padhai Bhi' Programme: Aims to establish a preschool network at Anganwadi centres.
• R&D Progress: Nearly 1 lakh patents granted in FY24.

5. Medium-Term Outlook: Growth Strategy for New India

• Six Key Focus Areas for Amrit Kaal:
  • Boost private investment
  • Expand MSMEs
  • Agriculture as the growth engine
  • Financing green transition
  • Bridging education-employment gap
  • Capacity building of states
• Target for Economic Growth: Collaborative effort for 7%+ growth by 2030.

6. Climate Change and Energy Transition

• Renewable Energy Capacity: 45.4% of India's installed electricity comes from non-fossil sources.
• Emission Intensity Reduction: 33% reduction from 2005 levels by 2019.
• Investment in Clean Energy: ₹8.5 lakh crore invested between 2014-23.
• Mission LiFE: Promotes harmony between humans and nature, focusing on mindful consumption.

7. Social Sector: Benefits that Empower

• Ayushman Bharat Scheme: 34.7 crore cards issued, covering 7.37 crore hospital admissions.
• Mental Health Coverage: 22 mental disorders covered under Ayushman Bharat – PMJAY.

8. Employment and Skill Development

• Urban Unemployment Rate in FY24: Declined to 6.7%.
• EPFO Net Payroll Additions: Increased from 61.1 lakh in FY19 to 131.5 lakh in FY24.
• Gig Workforce: Expected to expand to 2.35 crore by FY30.
• Female Labour Force Participation: Continuous improvement over six years.

9. Agriculture and Food Management

• Average Annual Growth Rate in Agriculture and Allied Sectors: 4.18% (FY19-24).
• Total Agricultural Credit Disbursed in FY24: ₹22.84 lakh crore.
• Payoff from Agricultural Research: Each rupee invested yields ₹13.85 return.

10. Industry: Focus on Small and Medium Enterprises

• Industrial Growth Rate in FY24: 9.5%.
• Pharmaceutical Market: Valued at $50 billion, India is the 3rd largest pharmaceutical market.
• New Airport Terminals: 21 terminals operationalized in FY24, increasing capacity by 62 million passengers annually.

11. Services: Fueling Growth Opportunities

• Services Sector Exports in FY24: $341.1 billion.
• India’s Share in Global Digital Service Exports: 6% in FY23.
• E-commerce Industry: Expected to surpass $350 billion by FY30.

12. Infrastructure: Lifting Potential Growth

• National Highway Construction Speed: Increased from 11.7 km/day in FY14 to 34 km/day in FY24.
• Railway Capital Expenditure: Increased by 77% over the past five years.
• PLI Schemes: Attracted ₹1.28 lakh crore investment until FY24.