Finance Minister Nirmala Sitharaman presented the Economic Survey a day before the Union Budget (Budget 2024). It gave a complete account of the Indian economy. Along with this, economic challenges and future prospects were also mentioned.
In particular, the Economic Survey talked about the difficulties that arose after the Corona period. It also talked about the most discussed issue of the country, i.e. employment opportunities. The Economic Survey includes many data including GDP growth, inflation, employment rate, fiscal deficit.
What did the economic survey say about employment
The Economic Survey has put a lot of emphasis on employment. According to it, the need for work force in India's economy is increasing rapidly. To meet this need, an average of 78.5 lakh jobs need to be created annually in the non-agricultural sector by 2030. The Economic Survey says that there can be good growth in the service sector in the future.
It also says that the role of the corporate sector should increase in creating employment opportunities. The Economic Survey states that the unemployment rate in urban areas came down to 6.7 percent during the first three months of 2023. However, the Economic Survey also says that due to global challenges and changes in technology, much hiring is not expected in the IT sector during the current financial year.
Hope to get relief from inflation
In the case of inflation, the Economic Survey has cited RBI data. According to RBI's estimate, if the monsoon remains normal and there is no policy shock, then retail inflation will come down to 4.5 percent in the current financial year and 4.1 percent by the next financial year.
At the same time, the International Monetary Fund has estimated retail inflation to be 4.6 percent in 2024 and 4.2 percent in 2025. The World Bank has predicted a decline in global prices during 2024 and 2025. On the basis of all this, the Economic Survey has expressed hope that retail inflation in India will decrease.
The Economic Survey has also praised the way inflation was handled efficiently. It said that challenges like the global crisis, supply chain disruptions and monsoon uncertainty increased inflation pressures. But, it was managed efficiently due to administrative and monetary policy responses. This led to retail inflation averaging 6.7 per cent in FY23, which came down to 5.4 per cent in FY24.
Real GDP increased by 20% after Covid
The Economic Survey shows that India's economy has improved a lot after the Corona epidemic. In the financial year 2023-24, the real GDP was 20 percent more than the financial year 2019-20. Only a few economies of the world have been able to achieve such a feat. The Economic Survey believes that even in the current financial year i.e. 2024-25, India's GDP growth will be good despite geopolitical tensions and climate risks.
Praise the stock market
The Economic Survey has praised the private capital market a lot. It said that due to the private capital market, capital of Rs 10.9 lakh crore was raised during the financial year 2024. The market capitalization of the Indian stock market has increased tremendously. Especially, due to the increased participation of retail investors. Due to this, India has reached the fifth position in the world in terms of the ratio of GDP and market capitalization.
What did the Economic Survey say on agriculture?
The Economic Survey has pointed out the need to increase focus on the agriculture sector. This sector provides the maximum employment opportunities in the country. It also plays an important role in the country's exports. According to the Economic Survey, focusing on the agriculture sector will help in accelerating the pace of progress of the country.
Emphasis on public-private partnership
The economic survey indicates that the government's emphasis on public-private partnership will increase. This year, 33 assets have been identified for sale for NHAI. The economic survey revealed that the profits of the private sector have increased. But, it is a matter of concern that employment opportunities have not increased in the same proportion.
