Key highlights of Economic Survey 2022-23

TIL Desk/National/New Delhi/ Finance Minister Nirmala Sitharaman on Tuesday tabled the Economic Survey 2022-23 in the Lok Sabha. Economy has nearly recouped what was lost, renewed what had paused; re-energised what had slowed during the pandemic, says the Economic Survey.

India is third-largest economy in the world in PPP (purchasing power parity) terms; 5th largest in terms of exchange rate, and will remain the fastest growing major economy in the world, says the pre-Budget Economic Survey.

India’s economy to grow 6.5 pc in 2023-24 compared to 7 pc in current fiscal, 8.7 pc in 2021-22, says the economic document. Following are the highlights of the Economic Survey 2022-23:                

* India’s economy to grow 6.5 pc in 2023-24, compared to 7 pc this fiscal and 8.7 pc in 2021-22.

* India to remain the fastest growing major economy in the world.

* GDP in nominal terms to be 11 pc in next fiscal.

* Growth driven by private consumption, higher capex, strengthening corporate balance sheet, credit growth to small businesses and return of migrant workers to cities.

* India third largest economy in PPP (purchasing power parity) terms, fifth largest in terms of exchange rate.

* Economy has nearly “recouped” what was lost, “renewed” what had paused, and “renerengised” what had slowed during the pandemic and since the conflict in Europe.

* Real GDP growth to be in the range of 6-6.8 pc next fiscal depending on global economic, political developments .

* India’s recovery from the pandemic was relatively quick, growth next fiscal to be supported by solid domestic demand, pick up in capital investment.

* RBI projection of 6.8 pc inflation this fiscal outside the upper target limit, not high enough to deter private consumption, also not too low to weaken inducement to invest.

* Borrowing cost may remain ‘higher for longer’, entrenched inflation may prolong tightening cycle.

* Challenge to rupee depreciation persists with the likelihood of further interest rate hikes by the US Fed .

* CAD may continue to widen as global commodity prices remain elevated, economic growth momentum stays strong.

* If CAD widens further, rupee may come under depreciation pressure.

* Overall external situation to remain manageable.

* India has sufficient forex reserves to finance CAD and intervene in forex market to manage rupee volatility.

* Elevated downside risks to global economic outlook as inflation persisting in advanced economies and hints of further rate hikes by central banks .

* Inflation did not “creep too far above” tolerance range compared to several advanced nations.

* The growth in exports has moderated in second half of current fiscal; the surge in growth rate in 2021-22 and first half of current fiscal led to production processes shifting gears from ‘mild acceleration’ to ‘cruise mode’ .

* Slowing world growth, shrinking global trade led to loss of export stimulus in the second half of current year.

* Schemes like PM KISAN, PM Garib Kalyan Yojana significantly contributed to lessening impoverishment.

* Credit disbursal, capital investment cycle, expansion of public digital platform and schemes like PLI, National Logitics Policy and PM Gati Shakti to drive economic growth.

* Bank credit growth likely to be brisk in FY24 on back of benign inflation, moderate credit cost.

* Credit growth to small businesses remarkably high at over 30.5 pc in January-November, 2022.

* Housing prices firming up after release of pent-up demand, decline in inventories.

* Central govt capex grew 63.4 pc in April-November of current fiscal.

* India’s economic resilience has helped it withstand the challenge of mitigating external imbalances caused by the Russia-Ukraine conflict without losing growth momentum.

* Stock market gave positive retruns in calendar year 2022 unfazed by FPI withdrawal.

* India withstood extraordinary set of challenges better than most economies.

* After a dip in FY21, GST paid by small businesses has been rising and now crossed pre-pandemic levels reflecting the effectiveness of targeted government intervention.

* Private consumption, capital formation led economic growth in current fiscal has helped generate employment; urban employment rate declined, while Employee Provident Fund registration rose.