Economic Survey 2024 (Pre-General Election), Indian Economic Review 2024

As India gears up for the Lok Sabha polls and Finance Minister Nirmala Sitharaman prepares to present an interim budget on February 1, 2024, one notable absence in this election year is the traditional Economic Survey. This comprehensive annual report, usually presented by the Chief Economic Advisor (CEA), provides a detailed analysis of the country’s economic performance over the past year and offers insights into its prospects. However, in lieu of the Economic Survey, a noteworthy alternative has emerged – the “Indian Economy – A Review.” Read this article to get complete information about the Economic Survey 2024 which is published before the General Election

Economic Survey 2024 (Pre-General Election)

In the absence of the traditional Economic Survey for the upcoming interim budget amid the 2024 general elections, the government has introduced the “Indian Economy – A Review.” This document, while not a replacement for the official survey, provides critical insights into the last decade’s economic performance and future prospects. Projections indicate India’s potential to become a $5 trillion economy within three years, with a possible reach of $7 trillion by 2030. The report emphasizes the positive impact of structural reforms and adopts a cautious outlook, acknowledging global uncertainties. Its release strategically navigates the intersection of economic analysis and political dynamics in this election year.

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No Economic Survey Ahead Of Interim Budget 2024

The Economic Survey will not be presented before the Interim Budget 2024 because the budget is a vote-on-account before the Lok Sabha elections. This is a parliamentary convention, and the task is deferred to the incoming government.

The Economic Survey is an annual document that outlines India’s economic status. It is prepared by the Chief Economic Advisor (CEA) and the Finance Minister and is usually presented a day before the Union Budget announcement. However, in November 2023, Moneycontrol reported that the finance ministry would publish a “concise” document detailing the state of the Indian economy.

Why is No Economic Survey in 2024?

The primary reason for the absence of the Economic Survey this year is the upcoming general elections. The potential for the survey to become politicized, given the prospect of a change in government post-elections, could disrupt the regular budget process that typically follows the survey presentation.

Indian Economy – A Review: A Substitute Perspective

In place of the Economic Survey, the government has released a report titled “Indian Economy – A Review.” While this document does not replace the official Economic Survey, it offers valuable insights into the past decade of the Indian economy and sheds light on its future trajectory.

Highlights of Indian Economic Review 2024

In the recent review of the Indian economy, several key points underscore the country’s economic trajectory, focusing on achievements, challenges, and future prospects.

Growth Projections

India is positioned to become a $5 trillion economy within the next three years, with a potential to reach $7 trillion by 2030. The GDP growth rate for FY24 is anticipated to surpass 7.2%, outpacing the global economy struggling to achieve a growth rate exceeding 3%. This marks the third consecutive year of India achieving a growth rate exceeding 7%.

Structural Reforms and Positive Impact

The review emphasizes the positive impact of structural reforms undertaken over the past decade. These reforms include a rise in public sector investment, a robust financial sector, and significant non-food credit growth, all contributing to the moderate yet consistent growth of the Indian economy.

Fintech and Stock Market Milestones

India has emerged as the third-largest fintech economy globally, following the USA and the UK. Additionally, surpassing Hong Kong, India now holds the fourth position in the global stock market rankings. This achievement is attributed to both domestic and global investor interest, coupled with a continuous flow of Initial Public Offerings (IPOs).

Financial Inclusion Impact

The Pradhan Mantri Jan Dhan Yojana has played a crucial role in increasing the percentage of women holding bank accounts. The report highlights a substantial rise from 53% in 2015-16 to an impressive 78.6% in 2019-21.

Women’s Participation and Empowerment

Various initiatives, including the Skill India Mission, Start-Up India, and Stand-Up India, have led to a significant increase in the female labor force participation rate (LFPR), rising from 23.3% in 2017-18 to 37% in 2022-23. The Gross Enrolment Ratio (GER) for females in higher education has seen a fourfold increase, reaching 27.9% in FY21 from 6.7% in FY01. Overall GER has more than doubled from 24.5% to 58.2% between FY05 and FY22.

MSME Dynamism and Economic Efficiency

Micro, Small, and Medium Enterprises (MSMEs) are experiencing heightened dynamism due to supportive government measures. The implementation of the Goods and Services Tax (GST), along with domestic market integration and increased incentives for production, has led to improved economic efficiency and reduced logistics costs.

Cautious Outlook

While celebrating these achievements, the review maintains a cautious outlook on future growth and inflation, acknowledging global uncertainties and challenges that may impact India’s economic trajectory.

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