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Topic : Key Highlights: Economic Survey 2024
GS-3 Mains : Economy
Released: A day before the Budget presentation (July 2024)
Prepared by: Economic Division of Department of Economic Affairs in Ministry of Finance.
Structure:
- Part 1: Country’s economic developments & challenges, overall review.
- Part 2: Focuses on the past financial year (FY24).
Key Highlights:
- Resilient Economy:
- Growth over 7% for 3rd consecutive year.
- GVA (at 2011-12 prices) grew 7.2% in FY24.
- FY24 GDP 20% higher than FY20 (strong potential for continued growth).
- Improved CAD (0.7% of GDP) and sustainable external debt (18.7% of GDP).
- Stable Banking Sector:
- Broad-based double-digit bank credit growth.
- Multi-year lows for gross & net NPAs.
- Inflation:
- Overall inflation at 5.4% (lowest since pandemic) due to lower core inflation (goods & services).
- Food inflation a concern (increased from 6.6% in FY23 to 7.5% in FY24).
- External Sector:
- Strong despite global challenges.
- Improved Logistics Performance Index ranking (38th in 2023 from 44th in 2018).
- Export diversification with new destinations.
- Growth in services exports (IT/software & other business services).
- India – top remittance recipient globally (USD 120 billion in 2023).
- Positive net foreign portfolio investment.
- Energy:
- India’s energy needs to grow 2-2.5 times by 2047.
- 45.4% share of non-fossil sources in electricity generation capacity (as of May 2024).
- 33% reduction in emission intensity of GDP since 2005.
- Employment:
- Net EPFO payroll additions doubled in past 5 years (formal employment growth).
- Sectoral Performance:
- Average annual growth rate of 4.18% for agriculture & food management (last 5 years).
- Services sector – 55% of total economy in FY24.
- Services sector – major job creator, construction gaining importance due to government initiatives.
- India needs to create 7.85 million non-farm jobs annually till 2030.
- Mental Health:
- First time coverage of socio-economic impact of mental health issues.
- 10.6% of adults in India suffer from mental disorders (large treatment gaps).
- Recommendation for a community-based approach.
- Growth Strategy:
- Job & skill creation a key focus area.
- Other priorities:
- Tapping agriculture sector potential.
- Addressing MSME bottlenecks.
- Managing green transition.
- Deepening corporate bond market.
- Tackling inequality.
- Improving young population’s health.
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