Nirmala Sitharaman Presents Economic Survey 2023/24: Indian Economy on Strong Footing

New Delhi: Finance Minister Nirmala Sitharaman presented the Economic Survey 2023/24 in Parliament on Monday, a day before the Union Budget announcement. She highlighted the Indian economy’s resilience amidst global geopolitical challenges, describing it as being on a “strong wicket and stable footing.”

The Survey reported that the Indian economy has solidified its post-COVID recovery, with fiscal and monetary policies ensuring economic and financial stability. The projected growth for FY24 is estimated at 8.2%, with the economy expected to cross the 8% mark in three out of four quarters. The momentum from FY23 and FY24 is anticipated to continue into FY25, with growth projected between 6.5% and 7%.

Headline inflation is projected to be 4.5% in FY25, down from 4.1% this year. However, inflation in some food items has increased. Food inflation, which was 6.6% in FY23, rose to 7.5% in FY24 due to adverse weather conditions impacting production. Farmers have faced challenges from extreme weather events and depleted reservoirs.

Retail inflation, averaging 6.7% in FY23, decreased to 5.4% in FY24 due to the government’s timely policy interventions and the Reserve Bank of India’s price stability measures. This marks the lowest level since the pandemic.

The Survey emphasized the need for significant domestic efforts to sustain this high-recovery phase. It noted that a challenging global environment makes it difficult to reach agreements on key issues such as trade, investment, and climate change.

For further details on the Economic Survey and its implications, stay tuned.