Economic Survey 2023-24 Lecture Notes

Introduction

• Lecture by [Instructor Name].
• Economic Survey released by Finance Minister Nirmala Sitharaman in July 2023.
• Document is extensive, consisting of more than 500 pages.
• The survey is divided into 13 chapters.

Chapter 1: State of the Economy

• Growth Expectations for FY 24-25:

  • Strong domestic investment demand expected.
  • Improved agricultural performance anticipated, despite previous year performance issues.
  • Increase in merchandise and service exports.

• Geopolitical Risks:

  • Global conflicts affecting supply chains (e.g., Russia-Ukraine, Israel-Hamas).
  • Factors impacting economic growth:
    • Supply chain distortion.
    • Higher commodity prices and increased protectionism.
    • Inflationary pressures.

• GDP Growth Information:

  • India's GDP grew by 8.2% in previous fiscal year.
  • Expected GDP growth for FY 24-25: 6.5% to 7.0%.
  • GVA (Gross Value Added) growth recorded at 7.2%.

• Tax Revenue Growth:

  • Gross tax revenue expected to grow by 13.4%.
  • Direct taxes grew by 15.8%, while indirect taxes saw a growth of 10.6%.

• Inflation Trends:

  • Reduced from 6.7% in FY 23 to 5.4% in FY 24.
  • Current Account Deficit (CAD) improved to 0.7% of GDP (approx. $23.2 billion).

• Sector-wise Share in GVA:

  • Agriculture: 17.7%, Industry: 27.6%, Services: 54.7%.
  • Capital expenditure increased by 28.2% year-on-year.

Chapter 2: Monetary Management and Financial Intermediation

• RBI's Role in Controlling Inflation:

  • RBI maintained a steady policy rate throughout FY 24 to manage inflation.
  • Repo rate set at 6.5%.
  • Core inflation declined to 4% from April 2022 to June 2024.

• Banking Sector Performance:

  • Credit disbursement by scheduled commercial banks at ₹164.5 lakh crore.
  • NPAs (Non-Performing Assets) ratio declined to 2.8%.

• Corporate Debt Management:

  • IBC recognized as an effective solution for resolving balance sheet issues.

Chapter 3: External Sector

• Exports and Imports Trends:

  • Merchandise and services exports expected to grow by 0.5%, while imports declined by 4.9%.
  • India's share in global goods exports at 1.8%.

• Remittances and External Debt:

  • India remains the top remittance recipient globally, reaching $120 billion in 2023.
  • External debt remains sustainable with an external debt to GDP ratio at 18.7%.

Chapter 4: Climate Change and Energy Transition

• Investment in Clean Energy:
  • Clean energy investments exceeded ₹88.5 lakh crore between 2014 and 2023.
  • Share of non-fossil sources in installed electricity generation reached 45.4%.

Chapter 5: Social Sector Initiatives

• Direct Benefit Transfers:

  • Over ₹369 lakh crore transferred through DBT from FY 2018 to 2024.

• Education and Health Initiatives:

  • Significant increase in enrollment in higher education.
  • India made rapid progress in R&D, with nearly 1 lakh patents granted in FY 24.

Final Notes

• The next lecture will continue discussing the Economic Survey 2023-24.
• Focus on understanding the data and its implications for the economy.
• Keep track of important statistics for exams.