India’s Economy Grows Strong: Finance Minister Nirmala Sitharaman to Present Budget
The Economic Survey presented in Parliament projects India’s real GDP growth at 6.5-7% for 2023-24, despite higher market expectations. Real GDP growth is the economic growth minus inflation.
India’s real GDP grew by 8.2% in 2023-24, surpassing previous years. The survey credits timely policy interventions and price stability measures for maintaining low inflation at 5.4%, the lowest since the pandemic.
Finance Minister Nirmala Sitharaman will present the Union Budget for 2024-25, marking her seventh budget speech. This will surpass the record set by former Prime Minister Morarji Desai.
Key focus areas identified in the survey include generating productive employment, addressing skill gaps, tapping the full potential of the agriculture sector, easing compliance for MSMEs, managing India’s green transition, and handling challenges from China.
India is expected to remain the fastest-growing major economy in 2024-25, with global institutions projecting growth between 6.6-7.2%. The IMF has raised India’s growth projections for 2024 to 7%, maintaining its status as the fastest-growing economy in emerging markets and developing economies.
Doubts Revealed
Finance Minister -: The Finance Minister is a person in the government who is responsible for managing the country’s money, including how it is spent and collected.
Nirmala Sitharaman -: Nirmala Sitharaman is the current Finance Minister of India. She helps make important decisions about India’s money and economy.
Budget -: A budget is a plan that shows how much money will be spent and earned. The Finance Minister presents this plan to the country every year.
Economic Survey -: The Economic Survey is a report that gives details about how the country’s economy is doing. It helps people understand if the economy is growing or facing problems.
Parliament -: Parliament is a place where important decisions about the country are made. It is where laws are discussed and passed.
GDP -: GDP stands for Gross Domestic Product. It is the total value of all goods and services produced in a country. It helps measure how well the economy is doing.
Real GDP -: Real GDP is the GDP adjusted for inflation. It gives a more accurate picture of the economy’s growth by removing the effect of price increases.
Inflation -: Inflation is when prices of goods and services go up over time. It means you need more money to buy the same things.
Union Budget -: The Union Budget is the annual financial statement presented by the Finance Minister. It outlines the government’s revenue and expenditure for the upcoming year.
Employment -: Employment means having a job or work. It is important because it helps people earn money to live.
Agriculture -: Agriculture is the practice of farming, including growing crops and raising animals. It is a major part of India’s economy.
MSMEs -: MSMEs stands for Micro, Small, and Medium Enterprises. These are small businesses that play a big role in the economy by providing jobs and products.
Green transition -: Green transition means moving towards using more environmentally friendly practices and energy sources to protect the planet.
China -: China is a neighboring country to India. Sometimes, India faces challenges in trade and other areas from China.
