• Budget Session starts, Economic Survey presented
• Economic Survey highlights post-pandemic optimism
• Corporate success, investment, and future challenges
• Indian economy strong, faces global challenges
• Economic Survey outlines growth, global challenges

Budget Session starts, Economic Survey presented

Economic Survey 2023-24: 5 Key Takeaways

The Budget Session of Parliament commenced today. Union Finance Minister Nirmala Sitharaman presented the Economic Survey of India 2023-24, along with a statistical appendix, in both Houses of Parliament on July 22. She is scheduled to present the Union Budget for 2024-25 in the Lok Sabha on July 23. This will be the first budget of the Modi Government since the NDA’s third consecutive term in power. Additionally, the Budget for the Union Territory of Jammu and Kashmir for 2024 will also be presented on July 23.

Economic Survey highlights post-pandemic optimism

Economic Survey 2023-24: 5 Key Takeaways: The Economic Survey serves as an official report on the government’s financial performance and the state of the economy for the year ending March 31. It also outlines future policy changes. Typically, the Ministry of Finance releases the survey a day before the Union Budget is presented. The Economic Survey 2023-24, which was tabled on February 1, 2023, stated that the challenges induced by the pandemic are over, and the outlook for the coming years is more optimistic than in the pre-COVID years.

Corporate success, investment, and future challenges

Economic Survey 2023-24: 5 Key Takeaways: The Survey highlights that the corporate sector is experiencing unprecedented success, with profit before taxes nearly quadrupling and the profit-to-GDP ratio reaching a 15-year high in FY24. However, it emphasizes that Indian companies could further enhance their contributions by focusing on increased investment and job creation.

It asserts that it is in the corporate sector’s best interest, given its excess profits, to take job creation seriously, while also ensuring they find individuals with the appropriate skills and attitudes. The Survey also points out that the geopolitical landscape has shifted since the last Economic Survey (published in January 2023).

It notes that the environment that supported China’s rise is no longer applicable, as globalization was on the rise and the West was supportive of China’s integration into the global economy. The current concerns over climate change and global warming were not as pronounced then. Additionally, the advent of Artificial Intelligence and its impact on the workforce are highlighted.

The Survey warns that these factors may pose challenges to sustained high growth rates for India in the future. Addressing these issues will require a collaborative effort among union and state governments and the private sector.

Indian economy strong, faces global challenges

Economic Survey 2023-24: 5 Key Takeaways: The Economic Survey states that the Indian economy is in a strong and stable position, showing resilience despite geopolitical challenges. It highlights that the Indian economy has successfully consolidated its recovery from Covid, thanks to policymakers ensuring economic and financial stability.

However, it also notes that for this recovery to be sustained, significant efforts are needed domestically, as it has become exceptionally challenging to reach agreements on global issues such as trade, investment, and climate.

Finance Minister Nirmala Sitharaman tabled the Economic Survey 2023-24 and its statistical appendix in the Lok Sabha, with plans to present it later in the Rajya Sabha. The Budget should be viewed not just as a financial statement, but as a reflection of the policy and politics of the current government, according to G. Vijay, a faculty member at the School of Economics, University of Hyderabad.

Economic Survey outlines growth, global challenges

Economic Survey 2023-24: 5 Key Takeaways: The Economic Survey document provides insights into the state of the economy and various indicators for 2023-24 (April-March), as well as an outlook for the current year. Prepared by the Economic Division of the Department of Economic Affairs within the Ministry of Finance and overseen by the Chief Economic Adviser, it also offers a glimpse into the tone and direction of the Union Budget.

Originally part of the Budget document, the Economic Survey was separated and presented prior to the Union Budget in the 1960s. It typically includes a central theme, such as the ‘Agile Approach’ in 2022, which focused on India’s economic response to COVID-19, and ‘Recovery Complete’ in 2023, which highlighted the economy’s rebound from the pandemic and other global events.

Union Finance Minister Nirmala Sitharaman will present the Economic Survey 2024-25 today, the first day of the Monsoon Session of Parliament. The Economic Survey acts as an official report card on the government’s financial performance and the economy’s state for the year ending March 31, along with future policy outlooks. It is usually released by the Ministry of Finance a day before the Union Budget.

The Economic Survey 2023-24, presented on February 1, 2023, noted that not only had the pandemic’s effects subsided, but the economic outlook was also more promising than before COVID-19.

In a recent statement, Prime Minister Narendra Modi criticized opposition parties for attempting to prevent him from speaking in Parliament during the previous session, asserting that such tactics are inappropriate in a democracy. He condemned the negative politics of some parties, claiming they used parliamentary time to obscure their failures.

Modi emphasized that the upcoming Budget would establish a solid foundation for the next five years and promote a vision for a ‘Viksit Bharat’ (Developed India). He highlighted the significance of the Budget session as a key milestone in India’s democratic journey, noting that his government has returned to power for a third term after 60 years. He expressed optimism about India’s opportunities and the positive outlook for investment and performance.