Finance Minister Nirmala Sitharaman Presents Economic Survey
New Delhi, India – Finance Minister Nirmala Sitharaman presented the economic survey in Parliament, highlighting that the Indian economy can grow at a rate of 7% in the medium term. This growth is contingent on a collaborative effort between the Union Government, State Governments, and the private sector.
Key Highlights
The survey emphasized the need for structural reforms and identified six critical areas for growth, termed “Amrit Kaal”:
- Boosting private investment
- Expanding MSMEs (Micro, Small, and Medium Enterprises)
- Recognizing agriculture’s potential
- Financing India’s green transition
- Bridging the education-employment gap
- Building state capacity and capability
Financial Sector and External Trade
India’s financial sector is undergoing significant changes, with primary capital markets facilitating capital formation of Rs 10.9 lakh crore in FY24. The country’s rank in the World Bank’s Logistics Performance Index improved from 44th in 2018 to 38th in 2023. Services exports grew by 4.9% to USD 341.1 billion, driven by IT and business services.
Social Sector and Labour Market
The social sector is transforming, particularly in education and healthcare. The New Education Policy 2020 aims for foundational literacy and numeracy for all children by the third standard. Ayushman Bharat has generated over 34.7 crore cards, covering 7.37 crore hospital admissions. The unemployment rate has declined to 3.2% in 2022-23, with rising youth and female workforce participation.
Agriculture and MSMEs
Agriculture remains vital, with policies needed to align with climate imperatives and water security. The MSME sector faces challenges in supply chain management and market access. Support systems and government-industry-academia collaboration are essential for growth.
Infrastructure and Services Sector
Infrastructure development is predominantly public sector-led, requiring higher private sector financing. The services sector needs focused skills in areas like AI and cybersecurity, with upskilling through government and industry collaboration.
Doubts Revealed
Finance Minister -: The Finance Minister is a person in the government who is responsible for managing the country’s money and economic policies. In India, this role is currently held by Nirmala Sitharaman.
Nirmala Sitharaman -: Nirmala Sitharaman is an Indian politician who is the current Finance Minister of India. She is responsible for presenting the economic survey and the budget.
Economic Survey -: The Economic Survey is a report presented by the Finance Minister that reviews the country’s economic progress over the past year and outlines future economic plans.
Parliament -: Parliament is the place where laws are made in India. It consists of two houses: the Lok Sabha (House of the People) and the Rajya Sabha (Council of States).
Union Government -: The Union Government, also known as the Central Government, is the national government of India that governs the entire country.
State Governments -: State Governments are the governments of individual states in India. Each state has its own government that manages local affairs.
Private Sector -: The private sector includes businesses and industries that are not owned or operated by the government. They play a key role in the economy by creating jobs and producing goods and services.
MSMEs -: MSMEs stands for Micro, Small, and Medium Enterprises. These are small businesses that are important for the economy because they create jobs and help in economic growth.
Green Transition -: Green Transition refers to the shift towards more environmentally friendly and sustainable practices, such as using renewable energy and reducing pollution.
Structural Reforms -: Structural Reforms are changes made to the way the economy is organized and operates, to make it more efficient and productive.
Financial Sector -: The Financial Sector includes banks, insurance companies, and other institutions that manage money and provide financial services.
Social Sector -: The Social Sector includes areas like education, healthcare, and social welfare that aim to improve the quality of life for people.
Agriculture -: Agriculture is the practice of farming, including growing crops and raising animals for food and other products.
Infrastructure -: Infrastructure refers to the basic physical systems of a country, like roads, bridges, and power supply, that are necessary for the economy to function.
