India’s Economic Survey 2023-24: Key Focus Areas for Growth
The Economic Survey for 2023-24 was presented in Parliament by Finance Minister Nirmala Sitharaman. The survey identifies six key policy areas crucial for India’s sustained economic growth:
1. Generating Productive Employment
Productive jobs are essential for growth and inclusion. India’s workforce is about 56.5 crore, with a significant portion in agriculture. The survey emphasizes the need for faster growth of productive jobs outside agriculture, especially in organized manufacturing and services.
2. Addressing Skill Gaps
Sixty-five percent of India’s population is under 35, but many lack the skills needed for a modern economy. The survey notes that about 51.25% of the youth are employable, an improvement from 34% a decade ago.
3. Maximizing Agricultural Potential
The agriculture sector faces structural issues affecting economic growth. The survey suggests improving price discovery mechanisms, increasing efficiency, and addressing landholding fragmentation among other issues.
4. Easing MSME Compliance
MSMEs face extensive regulation and compliance requirements, hindering their growth. The survey highlights the need to ease these requirements and improve access to affordable funding.
5. Managing the Green Transition
India’s green transition requires a balanced energy mix, grid stability, and affordable storage technology. The survey also mentions India’s ambitious climate goals, including net-zero emissions by 2070.
6. Tackling Challenges Posed by China
China’s dominance in global supply chains and critical minerals is a concern. The survey discusses the challenges of integrating India into global supply chains without over-reliance on China.
The Economic Survey, prepared by the Economic Division of the Department of Economic Affairs, provides insights into the state of the economy and various indicators for 2023-24. Sitharaman will present the Union Budget for 2024-25 tomorrow, marking her seventh budget speech.
Doubts Revealed
Economic Survey -: The Economic Survey is a report presented by the government that reviews the country’s economic progress over the past year and suggests future policies.
Finance Minister -: The Finance Minister is a government official responsible for managing the country’s finances, including the budget and economic policies. In India, this role is currently held by Nirmala Sitharaman.
Nirmala Sitharaman -: Nirmala Sitharaman is an Indian politician serving as the Finance Minister of India. She is responsible for presenting the Economic Survey and the Union Budget.
MSME -: MSME stands for Micro, Small, and Medium Enterprises. These are small businesses that play a crucial role in the Indian economy by providing employment and contributing to GDP.
green transition -: The 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 economic and legal systems to improve efficiency and promote growth. These can include changes in policies, regulations, and institutions.
third-largest economy -: Becoming the third-largest economy means that India aims to have the third-highest total value of goods and services produced in the country, after the United States and China.
7% growth rate -: A 7% growth rate means that the total value of goods and services produced in India is expected to increase by 7% each year, which is considered a strong rate of economic growth.
