Finance Minister Nirmala Sitharaman Presents Economic Survey 2023-24
The Indian economy has recovered and expanded significantly post-pandemic. According to the Economic Survey 2023-24, tabled by Finance Minister Nirmala Sitharaman, the real Gross Domestic Product (GDP) in 2023-24 was 20% higher than its pre-pandemic level in 2019-20. This achievement is rare among major economies.
Strong Growth Prospects
The Economic Survey notes that India’s economy continued its growth momentum from 2022-23 into 2023-24, despite various external challenges. The real GDP grew by 8.2% in 2023-24, exceeding 8% in three out of four quarters. The focus on maintaining macroeconomic stability helped minimize the impact of external challenges.
Capital Formation and Investment
The government’s emphasis on capital expenditure and private investment has boosted capital formation growth. Gross Fixed Capital Formation increased by 9% in real terms in 2023-24. Healthier corporate and bank balance sheets are expected to further strengthen private investment.
Inflation and Fiscal Balance
Inflationary pressures were managed effectively, with retail inflation declining from 6.7% in 2022-23 to 5.4% in 2023-24. Improved fiscal balances were achieved through tax compliance gains, expenditure restraint, and increasing digitization.
External Balance
Despite subdued global demand for goods, strong services exports helped maintain the external balance. The current account deficit (CAD) improved to 0.7% of GDP in 2023-24 from 2.0% in 2022-23.
Finance Minister Nirmala Sitharaman will present the Union Budget for 2024-25 tomorrow, marking her seventh budget speech and surpassing the record set by former Prime Minister Morarji Desai.
Doubts Revealed
Finance Minister -: The Finance Minister is a person in the government who is responsible for managing the country’s money and economy. In India, this person is Nirmala Sitharaman.
Nirmala Sitharaman -: Nirmala Sitharaman is an important leader in India who takes care of the country’s finances. She helps decide how the government spends money and collects taxes.
Economic Survey -: The Economic Survey is a report that tells us how well the country’s economy is doing. It is like a report card for the country’s money matters.
GDP -: GDP stands for Gross Domestic Product. It is the total value of all goods and services produced in a country. It helps us understand how rich or poor a country is.
Post-Pandemic -: Post-Pandemic means the time after the COVID-19 pandemic. It refers to how things are getting better after the virus affected many people and businesses.
Real GDP -: Real GDP is the value of all goods and services produced in a country, adjusted for price changes. It gives a more accurate picture of the economy’s health.
Fiscal Balances -: Fiscal Balances refer to the difference between the government’s income and its spending. If the government spends more than it earns, it has a deficit.
Private Investment -: Private Investment is when people or companies spend their own money to start or grow businesses. It helps the economy grow by creating jobs and new products.
Union Budget -: The Union Budget is a plan that shows how the government will earn and spend money in the coming year. It is presented by the Finance Minister in Parliament.
