Economic Survey 2023-24: A Cautious Projections with Emphasis on Reform

The Economic Survey 2023-24, tabled in India's Parliament, estimates a GDP growth of 6.5-7% for 2024-25, down from 8.2% the previous year, highlighting potential risks including geopolitical conflicts. The survey underscores the need for RBI to reconsider its approach to food inflation and for the government to aid the poor via direct cash transfers. Structural reforms like GST and IBC are noted for delivering positive outcomes. A balanced outlook for the financial sector is presented, with caution advised regarding over-financialisation.

The Economic Survey 2023-24, presented in Parliament on Monday, forecasts India's GDP growth at 6.5-7% for 2024-25, a decline from the previous year's robust 8.2%, cautioning that geopolitical conflicts could impact growth.

Finance Minister Nirmala Sitharaman tabled the Economic Survey, set to present the Union Budget in the Lok Sabha on Tuesday.

The projection is slightly below the Reserve Bank's 7.2% estimate, although global bodies like the IMF and ADB project 7% growth. The survey advises the Reserve Bank of India to focus less on food inflation when setting interest rates and suggests government measures like direct cash transfers to buffer higher food costs.