Economic Survey 2023: Nirmala Sitharaman Tables Economic Survey, FY24 GDP Growth Seen At 6-6.8%
FM laid the document in the Lok Sabha after the conclusion of President Droupadi Murmu's address to both Houses of Parliament
Union Finance Minister Nirmala Sitharaman on Tuesday tabled the Economic Survey (2022-23) in Parliament. She laid the document in the Lok Sabha after the conclusion of President Droupadi Murmu's address to both Houses of Parliament. Tuesday is the first day of the Budget session of Parliament.
The GDP growth is seen at 6-6.8 per cent, lowest in three years on the back of macroeconomic challenges in the next fiscal year.
On the other hand, inflation is pegged at 6.8 per cent for the current fiscal not high enough to deter private consumption or low enough to weaken investment, according to the Economic Survey.
India to remain the fastest growing major economy in the world, according to the pre-Budget Economic Survey. India is third-largest economy in the world in PPP (purchasing power parity) terms, while the 5th largest in terms of exchange rate, according to Economic Survey.
Economy has nearly recouped what was lost, renewed what had paused; re-energised what had slowed during the pandemic. Also, in FY22, India grew at 8.7 per cent, it added.
"India withstood an extraordinary set of challenges better than most economies," it said. India's economy has rebounded since the Covid-19 pandemic, but the Russia-Ukraine conflict has triggered inflationary pressures and prompted central banks, including India's, to reverse the ultra-loose monetary policy adopted during the pandemic.
The survey said the pace of price increases is not high enough to deter private consumption or low enough to weaken investment, even though it remained above the central bank's inflation target in FY23.
The survey said noted that "the current account deficit (CAD) may continue to widen as global commodity prices remain elevated, but the economic growth momentum stays strong. If CAD widens further, the rupee may come under depreciation pressure. However, the overall external situation will remain manageable." "India has sufficient forex reserves to finance CAD and intervene in the forex market to manage rupee volatility," it said.
The survey also added that the downside risks to the global economic outlook remain elevated as inflation persists in advanced economies and the central banks are expected to keep raising the key interest rates.
"Challenge to rupee depreciation persists with the likelihood of further interest rate hikes by the US Fed," it said. It added that borrowing cost may remain "higher" for a longer period and entrenched inflation may prolong tightening cycle.
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