Finance Minister Nirmala Sitharaman tables Economic Survey 2022-23 in Lok Sabha

India's economic growth is forecast to be 6.5 per cent in fiscal 2024, according to the Economic Survey released by the government on Tuesday, a day ahead of the Union Budget presentation, the fifth by Finance Minister Nirmala Sitharaman since 2019.

Following are the highlights of the Economic Survey 2022-23 tabled in Parliament on Tuesday:

• 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.

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