Economic Survey 2024: The Economic Survey for the financial year 2023-24 has been presented. Finance Minister Nirmala Sitharaman has presented the Economic Survey for the last financial year in the Lok Sabha. According to the survey, India’s GDP is estimated to be 6.5 – 7 percent in the financial year 2024-25. At the same time, the inflation rate is estimated to be 4.5 percent in the current financial year, while the inflation rate is estimated to be 4.1 percent in the financial year 2025-26. Whatever suggestions have been given in the Economic Survey to accelerate the economy, a glimpse of it can be seen in the budget.
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Employment is needed for the laborers leaving agriculture!
Regarding employment, the Economic Survey states that the Services Sector is the sector that generates the most employment. The construction sector is growing rapidly due to the government’s emphasis on strengthening infrastructure. According to the survey, employment in the construction sector is unorganized and the salary is very low, so there is a need to create new employment opportunities for the labor force leaving agriculture. The survey states that due to the legacy of bad loans in the last decade, less employment has been created in the manufacturing sector in the last decade, but employment opportunities in this sector have increased since the financial year 2021-22.
Food inflation becomes a global challenge
According to the survey, food inflation has remained a challenge for the whole world for the last two years. In India, the agriculture sector has fallen prey to bad weather. Due to the decrease in water reserves, the crop has been damaged, which has reduced food production, due to which the prices of food items have increased. The result of this was that the food inflation rate which was 6.6 percent in the financial year 2022-23 has increased to 7.5 percent in the financial year 2023-24.
Reduction in inflation
According to the Economic Survey, inflation had increased due to the Corona epidemic, global tensions, supply-chain disruption, uneven monsoon. Food items became expensive due to international war and bad weather, which made goods and services expensive in India. But through administrative and monetary policy action, success has been achieved in controlling inflation in the country. Inflation rate was 6.7 percent in the financial year 2022-23, it has been successful in reducing it to 5.4 percent in the financial year 2023-24.
Urban-rural consumption boom
On the demand front, the Economic Survey said that the increase in private consumption is very important for GDP growth. Private Pile Consumption Expenditure (PFCE) grew at a rate of 4 percent in FY 2023-24. Demand is very strong in urban areas, which is reflected in urban consumption indicators including domestic passenger vehicle sales and air passenger traffic. Consumption in rural areas is also seen returning during the fourth quarter of the financial year January to March. According to FADA, there has been an increase in two-wheelers, three-wheelers and passenger vehicle sales.
The budget will be presented on July 23
After the presentation of the Economic Survey, the Finance Minister will present the full budget for the financial year 2024-25 on Tuesday 23 July 2024. This will be the seventh consecutive time that Nirmala Sitharaman will present the budget.Â
What is Economic Survey
Every year the Central Government presents the Economic Survey, which is prepared by the Department of Economic Affairs under the Ministry of Finance. It is prepared under the supervision of the Chief Economic Advisor of the country. After the survey is prepared, the Finance Secretary examines it, and then final approval is taken from the Finance Minister.
The Economic Survey presented by the Central Government before the budget is an important document. Its purpose is to provide information about the state of the Indian economy and the economic indicators during the past financial year. Economic forecasts for the current year are also presented in this survey.
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