6.8% GDP Growth Projection To 'Broad-Based Recovery': Key Highlights Of Economic Survey 2023

According to the Economic Survey 2022-23, the Indian economy is “staging a broad-based recovery across sectors”, positioning itself to “ascend to pre-pandemic growth path in FY23.”

Union Finance Minister Nirmala Sitharaman on Tuesday tabled the Economic Survey (2022-23) in Parliament. The Economic Survey 2022-23 forecasts India’s GDP growth for the next fiscal 2023-24 in a broad range of 6-6.8 per cent. It’s baseline forecast for real GDP growth is 6.5 per cent.  

The Economic Survey is prepared by Chief Economic Adviser (CEA) V Anantha Nageswaran. The Economic Survey gives a detailed account of the country's economic performance during the fiscal gone by and provides key data on macroeconomic indicators such as inflation, foreign exchange reserves, and the economic growth rate scenario. 

Here are the key highlights from the Economic Survey 

• According to the Economic Survey 2022-23, the Indian economy is “staging a broad-based recovery across sectors”, positioning itself to “ascend to pre-pandemic growth path in FY23.”


• Retail inflation was back within RBI's target range in November 2022. While India’s retail inflation rate peaked at 7.8 per cent in April 2022, above the RBI’s upper tolerance limit of 6 per cent, the overshoot of inflation above the upper end of the target range in India was, however, one of the lowest in the world. If inflation declines in FY24 and if the real cost of credit does not rise, then credit growth is likely to be brisk in FY24.


• The survey noted that the Direct Tax collections for the period April-November 2022 remain buoyant.


• It said noted that there is the challenge of the depreciating rupee, although it is better performing than most other currencies.


• The Economic Survey 2022-23 also noted that the slowing demand will likely push down global commodity prices and improve India’s current account deficit in FY24.


• The Center's capital spending for highways and road construction increased by 102 per cent year over year from April to November of FY23 to Rs 1.49 lakh crore. In Apr-Nov FY23, the Center's capital spending on the railways totaled Rs 1.15 lakh crore, an increase of 76.65 per cent year on year.


• In September 2022, cumulative FDI in the pharmaceutical industry exceeded $20 billion. Additionally, FDI inflows surged fourfold over five years, reaching $699 million in September 2022. Due to a negative base impact and the waning of the epidemic, pharmaceutical output growth has halted.


• The government and the corporate sector have gradually pushed to raise the share of renewable energy. This will guarantee a measured, steady transition to a new energy system, achieving the nation's environmental goals and prioritising its needs for national development.


• A situation of slow global development offers two benefits: oil prices will remain low and India's CAD will perform better than anticipated. The external environment will continue to be under control.


• The performance of the steel industry has been strong during the current fiscal year, with total production and consumption of finished steel at 88 MT and 86 MT, respectively.


• Enhanced Employment generation is seen in the declining urban unemployment rate and in the faster net registration in Employee Provident Fund.


• Cleaner balance sheets led to enhanced lending by financial institutions. Non-food credit offtake by Scheduled Commercial Banks growing in double digits since April 2022. The Gross Non-Performing Assets (GNPA) ratio of SCBs has fallen to a seven-year low of 5.0.


• Social sector expenditure (Centre and States combined) increases to Rs. 21.3 lakh crore in FY23 (BE) from Rs. 9.1 lakh crore in FY16.


• Central and State Government’s budgeted expenditure on the health sector touched 2.1 per cent of GDP in FY23 (BE) and 2.2 per cent in FY22 (RE) against 1.6 per cent in FY21.