Economic Survey

The Economic Survey is an annual publication by the Government of India that provides a comprehensive overview of the country's economic performance, policy initiatives, and future outlook. Typically presented to the Parliament ahead of the Union Budget, the Economic Survey analyzes various aspects of the economy, including GDP growth, inflation, fiscal and monetary policy, sectoral performance, employment, poverty alleviation, and social development. It also assesses the global economic environment and its implications for India. Additionally, the Economic Survey often includes policy recommendations aimed at promoting sustainable and inclusive economic growth, enhancing competitiveness, and addressing structural bottlenecks. Overall, the Economic Survey plays a vital role in informing policy decisions and shaping the economic agenda of the country. Since 2024 is an election year, the Economic Survey is delayed and instead a Ten Year Review of the economy has been published.

The Economic Survey of India is a report released annually by the Ministry of Finance. Under the direction of the Chief Economic Advisor, the Economics Division of the Department of Economic Affairs prepares this report. It serves as a crucial document for policymakers, economists, businesses, and the public, offering insights into key economic indicators, trends, and challenges. It was initially conducted in India in 1950–51. It used to be presented with the Union Budget back then but has been released separately since 1964.

The Economic Survey provides a review of the Indian economy's events over the previous 12 months as well as an outlook for the current year. The Indian economy's current state is also briefly described in the economic survey report. This contains data on the GDP, employment, trade, and inflation rates, among other things.

• The Economic Survey draws attention to the nation's economic trends and makes it easier to understand how money is raised and allocated in the Union Budget.
• The survey looks at trends in a number of important economic indicators that affect the budget, including foreign exchange reserves, jobs, infrastructure, prices, and imports and exports.

The General Election process will delay the release of the Economic Survey 2024. Rather, the Centre has published a report titled "Indian Economy–A Review," which covers the country's past ten years.

A review: Was released by DEA and contains the following important chapters:-

• Indian Economy: Past, Present & Future
  • This chapter traces India’s growth story from 1950s onwards and how the last decade has been truly transformational. It then delves into what drove this growth and finally what are the challenges confronting the Indian economy as it enters Amritkal.
• What Made the Indian Economy Resilient?
  • This chapter discusses the key factors securing Domestic Economy, safeguarding macroeconomic stability, effective use of our human resources, India's external sector and the climate action India has taken to become resilience.

The survey has 12 chapters which cover various key themes in the Indian economy

• Chapter 1: State of the Economy 2022-23: Recovery Complete.
• Chapter 2: India’s Medium-term Growth Outlook: With Optimism and Hope
• Chapter 3: Fiscal Developments: Revenue Relish
• Chapter 4:Monetary Management and Financial Intermediation: A Good Year
• Chapter 5: Prices and Inflation: Successful Tight-Rope Walking
• Chapter 6: Social Infrastructure and Employment: Big Tent
• Chapter 7: Climate Change and Environment: Preparing to Face the Future
• Chapter 8: Agriculture & Food Management: From Food Security to Nutritional Security
• Chapter 9: Industry: Steady Recovery
• Chapter 10: Services: Source of Strength
• Chapter 11: External Sector: Watchful and Hopeful
• Chapter 12: Physical and Digital Infrastructure: Lifting Potential Growth

This article will now delve into some key themes which have been highlighted about the Indian economy in the above documents.

• Rapid Growth & Development: India is experiencing rapid growth and development. It is believed that this growth is coming because of private consumption i.e. the expenditure by private people in the country. The second reason for this is the rapid formation of capital and infrastructure due to Government’s spending on this sector. This has allowed India to have a growth rate around 7-8% in FY24 while the rest of the world is facing an economic downturn.
  1. Improved Tax Collection:-
     1. There was a YoY increase in Gross Tax Revenue of 15.5%, mainly due to the robust growth of both direct taxes and GST.
  2. Increased Capital Expenditure:
     1. The Center's capital expenditures have risen gradually over time, from 1.7% of GDP in FY09 to 2.5% of GDP in FY22.
     2. The Centre gave interest-free loans and higher borrowing limits to state governments as an incentive to prioritise spending on capital expenditures (Capex).
     3. Increased capital expenditures have a significant positive impact on medium-term growth, especially in infrastructure-intensive industries like housing, urban affairs, railroads, and roads and highways.
• Success in Finance & Business:
  1. Fintech: India is now the third-largest fintech economy in the world, behind the United States and the United Kingdom.
  2. Investments: It has also risen to the fourth rank in the world's stock markets, surpassing Hong Kong. This success is attributed to consistent IPO activity as well as interest from both domestic and foreign investors.
     1. Reserve Bank of India (RBI) has increased the repo rate. As a result, there is now less excess liquidity and financial institutions' balance sheets are better, which facilitates lending.
        • It is anticipated that an increase in private capital expenditure will support and maintain the growth in credit offtake, thereby initiating a positive feedback loop of investment.
  3. Logistics costs have decreased as a result of increased economic efficiency brought about by the Goods and Services Tax (GST), improved production incentives, and the unification of domestic markets.
• Monetary Management:
  • Scheduled commercial banks (SCBs) have seen a decline in their Gross Non-PerforminAssets (GNPA) ratio to 5.0, a seven-year low, and a stable Capital-to-Risk Weighted Assets Ratio (CRAR) of 16.0.
  • Compared to other channels, the Insolvency and Bankruptcy (IBC) channel had the highest recovery rate in FY22, indicating a positive trend for the SCBs.
  • Controlling Fuel Inflation: Reducing the export duty on petrol and diesel, eliminating the import duty on major inputs, prohibiting the export of wheat products, lowering the export duty on rice and lowering the basic duty on crude and refined palm oil were some of the measures the government took to stem the price increase.
  • High Remittances: With US$ 100 billion in remittances in 2022, India will be the world's top recipient of remittances.
  • High Forex: India nevertheless ranked sixth in the world for holding foreign exchange reserves.

• Increased Spending: Overall, from Rs. 9.1 lakh crore in FY16 to Rs. 21.3 lakh crore in FY23, the government spent more money on the social sector.
• Focus: To create human capital, the two foundations of health and education are being reinforced.
• Education:
  • It is anticipated that the National Education Policy 2020 will improve the chances for the country's growth and development.
  • Improvements in gender parity and enrollment ratios in schools have resulted from government efforts.
• Healthcare:
  • The government increased its planned spending on the health sector from 1.6% of GDP in FY21 to 2.1% of GDP in FY23.
  • By January 4, 2023, there were over 1.54 lakh health and wellness centres operating throughout the nation, and nearly 22 crore people had benefited from the Ayushman Bharat Scheme.
• Poverty Alleviation:
  • According to the UN Multidimensional Poverty Index, over 41 crore people have left poverty between 2005–06 and 2019–21, indicating progress towards the Sustainable Development Goal of halving poverty by 2030.
• Aadhar and Co-WIN:
  • Aadhar was essential to the creation of the Co-WIN platform and the distribution of more than two billion vaccination doses.
• Aspirational Districts Programme:
  • Especially in rural areas, the Aspirational Districts Programme is regarded as a model of good governance.
• Female Banking: The number of women with bank accounts has increased significantly under the PM Jan Dhan Yojana, from 53% in 2015–16 to an astounding 78.6% in 2019–21.
• Female Education: In higher education, the overall Gross Enrollment Ratio (GER) more than doubled from 24.5% to 58.2% between FY05 and FY22, while the female GER quadrupled from 6.7% in FY01 to 27.9% in FY21.
• Housing: Affordable housing demand increased and attracted more buyers in FY23 as a result of the government's prompt policy intervention in the housing market and low interest rates on home loans

• Work Force Participation:
  • Following the effects of COVID-19, the labour market has recovered, with unemployment rates declining from 5.8% in 2018–19 to 4.2% in 2020–21.
  • It is a good development that the rural female labour force participation rate increased from 19.7% in 2018–19 to 27.7% in 2020–21.
• Female Labour Force:
  • Skill India Mission, Start-Up India, and Stand-Up India, which have increased female participation in human capital formation, female labour force participation has also seen significant growth, rising from 23.3% in 2017–18 to 37% in 2022–2023, respectively.
• eShram Portal:
  • As of December 31, 2022, over 28.5 crore workers had registered on the eShram portal, which was established to compile a national database of unorganised labourers.
• Direct Benefit Transfer (DBT):
  • This in conjunction with the JAM trinity has empowered marginalised individuals by bringing them into the formal financial system.

India's nationally determined contributions (NDCs), which include the shift to renewable energy resources, the pledge to achieve "Net Zero" emissions by 2070, and the steps taken to become energy independent, are listed in the chapter on "Climate Change and Environment" of the Economic Survey 2022–2023.

• India has also promised to cut the GDP's emissions intensity by 45% from 2005 levels by 2030.
• A further goal is to have about 50% of installed electric power capacity come from energy sources other than fossil fuels by 2030.
• India is expected to have more than 500 GW of installed non-fossil fuel capacity by 2030, having already surpassed its goal of 40% non-fossil fuel installed electric capacity by that time.
• A large-scale mobilisation LiFE—Living for Environment—was introduced during the UNFCCC COP26 climate summit in Glasgow.
• India released its first Sovereign Green Bonds (SGrBs) Framework in November 2022. The RBI held two ₹4,000 crore SGrB auctions.
• The National Green Hydrogen Mission, which India is using to rely on green hydrogen in order to become energy independent by 2047, was also highlighted in the survey.
• According to the survey, India is emerging as a preferred location for renewable energy investments, with USD 78.1 billion made in the previous seven years.
• Installed solar power capacity is a crucial National Solar Mission metric reached 61.6 GW in October of 2022.

Over the past six years, India's agriculture sector has grown at a strong average annual rate of 4.6%. As a result, agriculture was able to make a substantial contribution to the nation's overall development, growth, and food security.

• India has become a net exporter of agricultural products in recent years; in 2021–2022, exports will reach a record USD 50.2 billion.
• The following government actions led to the agribusiness's buoyant growth:
  • Increasing the productivity of livestock and crops
  • MSP for all required crops set at 1.5 times the weighted average cost of production for all of India
  • encouragement of crop diversity
  • Mechanisation as well as an increase in organic and horticultural farming
• In 2020–21, private investment in agriculture climbed to 9.3%. In 2021–2022, institutional credit to the agriculture sector reached a total of Rs. 18.6 lakh crore.
• India's foodgrain production increased steadily and reached 315.7 million tonnes in 2021–2022.
• The nation's total foodgrain production is estimated to be 149.9 million tonnes based on the First Advance Estimates for 2022–2023 (Kharif only).
• This is more than the average foodgrain production of the preceding five years (2016–17 to 2020–21).
• Additionally, the Government recently decided to give beneficiaries of the NFSA 2013 free foodgrains for a year, starting on January 1, 2023.
• A competitive, transparent online bidding system has been established by the National Agriculture Market (e-NAM) Scheme, which covers 2.39 lakh traders and 1.74 crore farmers, to guarantee that farmers receive fair prices for their produce.
• Farmer Producer Organisations (FPO) are promoting organic farming under the Paramparagat Krishi Vikas Yojana (PKVY).
• After the UNGA declared 2023 to be the International Year of Millets (IYM) during its 75th session in 2021, India is leading the charge to promote millets.

According to the Economic Survey 2022–2023 for the first half of FY 22–23, the Industrial Sector's overall Gross Value Added (GVA) increased by 3.7%, exceeding the 2.8% average growth for the same period last decade.

• Strong growth in private final consumption expenditure, the year's first half export stimulus, the bolstered bank and corporate balance sheets, the enhanced public apex, and the rise in investment demand have all stimulated demand for industrial growth.
• The industry's supply response to the demand stimulus has been strong.
• Since July 2021, both the Index of Industrial Production (IIP) and the Purchasing Managers Index (PMI) have been growing at an increasing rate.
• Both large industries and MSMEs deserve recognition for their double-digit growth (MSMEs by 30% since January 2022).
• With a nearly threefold increase in electronics exports from US $4.4 billion in FY19 to US $11.6 billion in FY22, India is now the world's second-largest producer of mobile phones.
• From US $180 million in FY19 to US $699 million in FY22, the Pharma Industry has seen a four-fold increase in Foreign Direct.
• In order to integrate India into international supply chains, Production Linked Incentive (PLI) schemes were also introduced across 14 categories, with an estimated capex of Rs. 4 lakh crore over the next five years.
• By amending the Companies Act of 2013, more than 39,000 compliances have been reduced, and more than 3500 provisions have been decriminalised as of January 2023.
• With a focus on 12 service sectors and 15 manufacturing sectors, "Made in India 2.0" is now targeting 27 industries to strengthen India's position in the global value chain. vestment (FDI).

India's services sector is predicted to expand by 9.1% in FY23 as opposed to 8.4% (YoY) in FY22.

• Since July 2022, a strong growth in PMI (Purchasing Managers' Index) services has been noted.
• India accounted for 4% of global services exports in 2021, placing it among the top ten exporting nations.
• Because there is a growing need for digital support, cloud services, and infrastructure modernization.
• India's services sector has proven resilient during the Covid-19 pandemic and in the face of geopolitical uncertainty.
• Consistent growth in the real estate market brought housing sales levels back to pre-pandemic levels, with a 50% increase in 2021–2022.
• The hotel occupancy rate in the tourism sector increased from 30–32% in April 2021 to 68–70% in November 2022, indicating a resurgence with rising foreign visitor arrivals in FY23.
• India's financial services are being revolutionised by digital platforms; the country's e-commerce market is expected to expand at a rate of 18% per year through 2025.

• The external sector of India has been encountering significant global challenges as a result of the recent geopolitical developments.
• Nonetheless, India has expanded its exports to Saudi Arabia, Brazil, and South Africa while diversifying its markets. In comparison to the US$ 9.7 billion (1.3% of GDP) deficit in Q2 of FY22, India's current account balance (CAB) showed a deficit of US$ 36.4 billion (4.4% of GDP) in Q2 of FY23.
• This was mostly brought on by an increase in net investment income outgo and a larger merchandise trade deficit of US$ 83.5 billion.
• India signed the Economic Cooperation & Trade Agreement (ECTA) with Australia and the Comprehensive Economic Partnership Agreement (CEPA) with the UAE in 2022 in an effort to expand its market and guarantee greater penetration.

• The potential GDP growth rate of India can be increased by 60–100 basis points (BPS) thanks to the country's Digital Public Infrastructure (DPI).
• Platforms like Open Network for Digital Commerce (ONDC) and Open Credit Enablement Network (OCEN) will help smaller businesses get access to the e-commerce market and credit in the near future, which will support the anticipated economic growth.
• Unified Payment Interface (UPI): Between 2019 and 2022, the value and volume of API-based transactions increased by 121% and 115%, respectively, opening the door for its widespread use internationally.
• Radio and Phone - To Promote Digital Empowerment:
  • As of September 22, there were 117.8 crore phone subscribers in India, 44.3% of whom were located in rural areas.
  • The percentage of phone users who are connected wirelessly is over 98%.
  • India's total teledensity, or the number of phone connections per 100 people, was 84.8% as of March 2022.
• According to the Economic Survey, the introduction of 5G services in India was a historic accomplishment in the telecommunications industry.
• In order to enable a quick rollout of 5G, the Indian Telegraph Right of Way (Amendment) Rules, 2022 will make it easier and faster to deploy telegraph infrastructure.
• The autonomous public service broadcaster of India, Prasar Bharati, reaches 99.1% of the country's population and 92% of its landmass. It transmits in 23 languages and 179 dialects through 479 stations.
• Digital Public Goods:
  • Programmes such as MyScheme, TrEDS, GEM, e-NAM, and UMANG have revolutionised the Indian market and made it possible for people to obtain services from a variety of industries.
  • The goal of the Open Credit Enablement Network is to enable end-to-end digital loan applications while democratising the lending process.
• With 1520 articles, 262 videos, and 120 government initiatives published on the National AI portal, "Bhashini" is seen as a tool for bridging language barriers.
• A range of digital public infrastructure products, such as e-RUPI and e-Way Bill, have guaranteed consumers real value for their money while lessening the producers' burden of compliance.

• Weakening Rupee: A few of the ongoing issues facing the Indian economy are the weakening rupee and the potential for more interest rate hikes by the US Federal Reserve.
• Current account deficit (CAD) might keep growing as global commodity prices are still high. However, India has the required foreign exchange (Forex) reserves to be able to tackle this challenge.
• Rising inflation: The RBI predicts that shortages in supply and growing feed costs will lead to higher domestic prices for milk, cereals, and spices in the near future. The likelihood of rising food prices is also rising due to global climate change.

Socio-Economic surveys are different from Economic survey and are conducted by The National Sample Survey Office (NSSO). These are conducted in the form of Rounds, each round being of one-year duration. 1st socio economic survey round was conducted during 1950-51. The subjects for socio economic surveys for different Rounds is decided on the basis of a 10 year cycle. In this cycle, 1 year is denoted to Land and Livestock Holdings, Debt and Investment; 1 year to Social Consumption (education, health care, etc.), 2 years to quinquennial surveys on household consumer expenditure, employment & un-employment situation and 4 years to non-agricultural enterprises, namely, manufacturing, trade and services in un-organized sector. The remaining 2 years are for open Rounds in which subjects of current/special interest on the demand of Central Ministries, State Governments and research organizations are covered.

The period from 2014 to 2022 has been an influential time in India's economic history since the years 2014–2022 saw reforms intended to make living and conducting business easier. The creation of public goods, trust-based governance, joint ventures with the private sector, and raising agricultural productivity served as the foundation for the reforms. However, during this time, important macroeconomic variables suffered as a result of global shocks and balance sheet stress.

As India today stands as the 5th largest economy in the world and targets the $5 Trillion the Indian economy is poised to grow at its potential in the medium term. We bounced back from the pandemic years and also are doing better than most other countries in the world. In 2047, the target is to be a developed country after 100 years of India’s independence.

To achieve this we will have to tackle the rising geopolitical conflicts in the world and the Indian Ocean Region due to China’s antics. India will also have to, on priority, focus on labour skilling, learning outcomes, welfare and health of our population, boosting industry specifically the MSMEs and gender balancing the worldforce.