general budget Finance Minister Nirmala Sitharaman presented the Economic Survey in the Lok Sabha a day before. This time the lowest growth rate is expected in three financial years.
India’s economic growth rate will remain at 6.5% in the next financial year i.e. 2023-24, despite the sound of recession worldwide. However, it is lower than the figure of 7% in the current financial year and 8.7% in the previous financial year i.e. 2021-22. These figures have come out in the Economic Survey 2022-23 presented by Finance Minister Nirmala Sitharaman in the Lok Sabha on Tuesday. In this, the growth rate has been estimated to be low, but despite this, India will remain among the major countries with the fastest growing economies in the world.
The Economic Survey says that after the Corona era, the recovery of the Indian economy has been faster than that of other countries. This has been possible due to increase in domestic demand and capital investment. However, the survey expressed concern that the current account deficit could widen as prices rise around the world. This may put pressure on the rupee. If the US Federal Reserve hikes interest rates, the rupee may depreciate. Debt can be costly in the long run.
India is the third largest economy in the world in terms of purchasing power parity and the fifth largest in terms of exchange rate.
The Economic Survey states that India has sufficient foreign exchange reserves to finance the current account deficit. It is also sufficient for the purpose of controlling the volatility of the rupee.
It has been said in the Economic Survey that after dealing with Corona, the Indian economy has moved forward on the path of development. India has already achieved pre-corona status in FY2022 as compared to many other countries. However, expressing concern over inflation in the survey, it has been said that the challenge of curbing inflation still remains intact. This situation has been created due to the ongoing conflict in Europe.
According to the survey, after the steps taken by RBI, the retail inflation rate has come down below the tolerance band of RBI in the month of November. The Indian currency is performing better against the dollar than most of the world’s currencies.
The Economic Survey states that the Central Government’s capital expenditure i.e. CAPEX has increased by 63.4 per cent in the first eight months of the financial year 2023. It has registered an increase as compared to the previous year. At the same time, the credit growth in the MSME sector supported by ECLGS has been more than 30.6 percent during the months of January to November.
Under the Sustainable Development Goal of halving poverty by the year 2030, more than 41 crore people have come out of poverty during 2005-05 to 2019-21. The Multi Dimensional Poverty Index of the United Nations has confirmed this.
The Periodic Labor Force Survey (PLFS) reveals That the urban unemployment rate for people aged 15 and above has come down from 9.8 in September 2021 to 7.2 per cent a year later. This has also been accompanied by an improvement in the Labor Force Participation Rate (LFPR), confirming the economy’s recovery from the pandemic-induced slowdown at the start of FY23. According to the Economic Survey, the urban unemployment rate has reached the lowest level in the last four years during this period.