English
New Delhi: The government of India today tabled the Economic Survey on the occasion of Budget Session 2023. The final draft of the Union Budget 2023-24 will be presented by Finance Minister Nirmala Sitharaman in Parliament tomorrow, 1 February 2023. As per the Economic Survey, the Indian economy is projected to grow between 6 per cent to 6.8 per cent in the financial year starting 1 April 2023, down from the 7 per cent that was projected for the current year.
The Economic Survey report has set the baseline scenario for growth for 2023/24 as 6.5 per cent, with nominal growth, which accounts for inflation, forecast at 11 per cent.
“The economic survey has projected FY 2024 growth at 6-6.8% This seems a tad stretched given the fact that there is a global slowdown, specifically in global exports. It also comes at a time when domestic demand is slowing down initially and we need to be fiscally prudent, especially after almost 3 years of fiscal breach ( globally too) due to the pandemic phase. The survey also alludes to the fact that the tightening cycle may remain prolonged, which means higher interest rates for a longer period of time. All eyes now on the budget which could determine the trajectory of growth as also direction of interest rates given the borrowing programme that will be announced tomorrow. Key to watch will be the gross borrowing numbers, which we estimate that it should be Rs 16 lakh crore,” said Lakshmi Iyer, CEO-Investment Advisory, Kotak Investment Advisors Limited.
The survey, tabled by Finance Minister Nirmala Sitharaman in parliament ahead of the annual budget on Wednesday, is mainly the government’s review of how the economy fared in the past year.
Even though Indian 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.
According to the Economic Survey, 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 2022/23.
For breaking news and live news updates, like us on Facebook or follow us on Twitter and Instagram. Read more on Latest Business News on India.com.
