Economic Survey: FM Sitharaman in Rajya Sabha Says Most States Witnessed Decreased Inflation Rates

Earlier in the day, FM Sitharaman presented the economic survey report on Lok Sabha and said the Indian economy can grow at a rate of 7 per cent.

New Delhi: Union Finance Minister Nirmala Sitharaman on Monday tabled the Economic Survey in Rajya Sabha and said most States and Union Territories in FY24 witnessed decreased inflation rates, with 29 out of 36 recording rates below 6 per cent – consistent with the overall decline in all-India average retail inflation compared to FY23.

Earlier in the day, FM Sitharaman presented the economic survey report on Lok Sabha and said the Indian economy can grow at a rate of 7 per cent.

The economic survey stated, “In the medium term, the Indian economy can grow at a rate of 7 per cent plus on a sustained basis if we build on the structural reforms undertaken over the last decade. This requires a tripartite compact between the Union Government, State Governments and the private sector.”

Achieving a sustained growth rate of over 7 per cent will require a tripartite compact between the Union Government, State Governments, and the private sector.

India’s financial sector is undergoing critical transformations. During FY24, primary capital markets facilitated capital formation of Rs 10.9 lakh crore, accounting for approximately 29 per cent of the gross fixed capital formation of private and public corporates in FY23.

The policy further adds India faces a unique blend of opportunities and challenges amid global trends such as geo-economic fragmentation, a push for self-reliance, looming climate change, the rise of technology, and limited policy space.

It suggests that the government’s focus must shift to bottom-up reforms and strengthening governance to ensure that the structural reforms of the past decade result in strong, sustainable, balanced, and inclusive growth.

The growth strategy for the medium term, termed “Amrit Kaal,” hinges on six critical areas. First, there must be a deliberate focus on boosting private investment. Second, the growth and expansion of India’s MSMEs (Mittelstand) should be a strategic priority.

Third, the potential of agriculture as an engine of future growth must be recognized, with policy impediments removed. Fourth, securing the financing of India’s green transition is essential. Fifth, bridging the education-employment gap is necessary.