TEJ Civils EdTech Economic Survey 2023-24
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 due to effective administrative and monetary policies.
Current Account Deficit (CAD): Stood at 0.7% of GDP in FY24, a significant 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, an achievement accomplished by very few major economies.
2. Monetary Management and Financial Intermediation
Banking and Financial Sector Performance in FY24: Displayed stellar performance with financial stability.
RBI Maintained Steady Policy Rate: Repo rate remained at 6.5%.
Credit Growth: Scheduled Commercial Banks (SCBs) credit disbursal grew by 20.2%, reaching ₹164.3 lakh crore by March 2024.
Agriculture and Allied Sectors Credit Growth: Witnessed double-digit growth in FY24.
Financial Inclusion: Continued progress in reducing inequality and poverty. Digital Financial Inclusion (DFI) remains the next big challenge.
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: Stood at 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: Remained strong despite global geopolitical challenges.
Services Exports: Grew by 4.9% to $341.1 billion in FY24.
India’s Global Market Share: In merchandise exports, India’s share stood at 1.8% in FY24.
Top Remittance Recipient: India received $120 billion in remittances in 2023, making it the top global recipient.
Current Account Deficit (CAD): Improved to 0.7% of GDP in FY24 from 2.0% in FY23.
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: A collaborative effort between the Union Government, State Governments, and the private sector is essential for India to achieve 7%+ economic growth by 2030.
6. Climate Change and Energy Transition
Renewable Energy Capacity: As of May 2024, 45.4% of India’s installed electricity generation capacity comes from non-fossil sources.
Emission Intensity Reduction: Reduced by 33% from 2005 levels by 2019.
Investment in Clean Energy: ₹8.5 lakh crore invested between 2014-23 in the clean energy sector.
Mission LiFE: Aims to promote harmony between humans and nature, focusing on mindful consumption rather than overconsumption.
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.
‘Poshan Bhi, Padhai Bhi’ Programme: Aims to establish the world’s largest, high-quality preschool network at Anganwadi centres.
R&D Progress: Nearly one lakh patents were granted in FY24, compared to less than 25,000 in FY20.
8. Employment and Skill Development
Urban Unemployment Rate in FY24: Declined to 6.7%.
Gig Workforce: Expected to expand to 2.35 crore by FY30.
Female Labour Force Participation: Showed continuous improvement over the last six years.
9. Agriculture and Food Management
Average Annual Growth Rate in Agriculture and Allied Sectors (FY19-24): 4.18% at constant prices.
Total Agricultural Credit Disbursed in FY24: ₹22.84 lakh crore.
Payoff from Agricultural Research: Each rupee invested yields a return of ₹13.85.
10. Industry: Focus on Small and Medium Enterprises
Industrial Growth Rate in FY24: 9.5%.
Pharmaceutical Market: Valued at $50 billion, making India the world’s third-largest pharmaceutical market.
11. Services: Fueling Growth Opportunities
Services Sector Exports in FY24: Reached $341.1 billion.
India’s Share in Global Digital Service Exports: Increased to 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 per day in FY14 to 34 km per day in FY24.
Railway Capital Expenditure: Increased by 77% over the past five years.
PLI Schemes: Attracted investment of ₹1.28 lakh crore until FY24.
New Airport Terminals: 21 terminal buildings operationalized in FY24, increasing passenger handling capacity by 62 million annually.
13. Climate Change and India’s Perspective
Mission LiFE: Focuses on promoting mindful consumption and sustainable growth rather than overconsumption.
Sovereign Green Bonds: Issued ₹36,000 crore worth of bonds in FY24 to finance green projects.
India’s Unique Approach: Emphasizes a harmonious relationship with nature, contrasting with the Western culture of overconsumption.
