Economic Survey 2023-24: Economy continues to expand, inflation largely under control

New Delhi, July 22
The Centre on Monday tabled the Economic Survey 2023-2024 in the Lok Sabha.

The survey presented by Finance Minister Nirmala Sitharaman and prepared by the Economic Division under the Ministry of Finance provides a detailed analysis of the economic performance for the fiscal year 2023-24.

It says the economy continues to expand which is estimated to have grown 8.2 per cent in real terms in FY24.

"In June, a new government took office. The National Democratic Alliance government led by Prime Minister Narendra Modi has returned to power with a historic mandate for a third term. His unprecedented third popular mandate signals political and policy continuity," the survey mentions.

"The Indian economy is on a strong wicket and stable footing, demonstrating resilience in the face of geopolitical challenges. The Indian economy has consolidated its post-Covid recovery with policymakers -- fiscal and monetary -- ensuring economic and financial stability. Nonetheless, change is the only constant for a country with high growth aspirations," the survey points out.

For the recovery to be sustained, there has to be heavy lifting on the domestic front because the environment has become extraordinarily difficult to reach agreements on key global issues such as trade, investment and climate.

The survey says that the headline inflation rate is largely under control, although the inflation rate of some specific food items is elevated.

The trade deficit was lower in FY24 than in FY23, and the current account deficit for the year is around 0.7 per cent of GDP. In fact, the current account registered a surplus in the last quarter of the financial year.

Foreign exchange reserves are ample. Public investment has sustained capital formation in the last several years even as the private sector shed its balance sheet blues and began investing in FY22. Now, it has to receive the baton from the public sector and sustain the investment momentum in the economy. The signs are encouraging, says the survey.