The Finance Minister Sitharaman ahead of the Union Budget 2024, today (July 22) tabled the Economic Survey 2023-2024 in the parliament. The Finance will present the Union Budget 2024 in the parliament on Tuesday (July 23), marking the first budget of Modi 3.0.
The parliament session commenced today and will have 19 sittings till August 12. The government is expected to present 6 bills in this session including the one that will be replacing the 90 year old Aircraft act.
Highlights from V. Anantha Nageswaran, Chief Economic Advisor - Economic Survey 2023-2024
1. After a phase of stagnation, private capital expenditure (capex) in India has made a strong bounce back and is crucial for economic growth as it highlights about the renewed confidence among investors. Both private and public investments are playing an important role, with households also contributing to this uptrend.
2. CEA Nageswaran highlighted anticipation for a better performance in the agricultural sector for the financial year 2024-25 and is expected to be driven by improved monsoon conditions and enhanced sectoral policies.
3. The Production-Linked Incentive (PLI) schemes are proving to be effective, with substantial investments being channeled into electronics and pharmaceuticals. As of May 2024, the PLI schemes have attracted investments exceeding Rs 1.28 lakh crore, he added.
4. ‘All Hands on Table’ Theme, he added highlighting that the Economic Survey emphasises the collective effort required to drive growth and stability in the economy.
5. The impact of a weak currency is mitigated by India's very low external debt ratio. This economic buffer helps shield the country from adverse effects typically associated with currency fluctuations.
6. While the soaring market cap to GDP ratio might seem like a positive indicator, it should be viewed cautiously, Nageswaran added. Proactive fiscal and monetary policies have effectively managed core inflation, keeping it within target limits.
7. India enjoys the lowest exchange rate volatility among emerging market economies, further strengthening its economic stability.
8. In recent years, there has been a notable surge in retail investors entering the stock markets through systematic investment plans (SIPs), Nageswaran added.
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