New Delhi, India

The Indian economy continues to demonstrate resilience and stability despite global geopolitical challenges, according to the Economic Survey 2023-24. Presenting the 476-page Economic Survey in the Indian Parliament on Monday (July 22), Union Finance Minister Nirmala Sitharaman said that the Indian economy has successfully consolidated its post-Covid recovery. 

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As per the survey, both fiscal and monetary policymakers have played pivotal roles in ensuring economic and financial stability and have led to continued economic expansion. 

However, the survey said that global market volatility means that for a country with high growth aspirations, change is the only constant.

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Investment momentum

As per the Survey document, for a sustained recovery, "there has to be heavy lifting".

"For the recovery to be sustained, there has to be heavy lifting on the domestic front because the environment has become extraordinarily difficult to reach agreements on key global issues such as trade, investment and climate," read the Survey.

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"Public investment has sustained capital formation in the last several years even as the private sector shed its balance sheet blues and began investing in FY22. Now, it has to receive the baton from the public sector and sustain the investment momentum in the economy," it added.

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"The signs are encouraging," the survey notes, citing the robust economic growth rates of 9.7 per cent and 7.0 per cent in the previous two financial years leading up to FY24.

The survey report adds that the headline inflation rate remains largely under control, even as specific food items have seen elevated inflation rates. The trade deficit in FY24 was lower compared to FY23, and the current account deficit stands at approximately 0.7 per cent of GDP. Additionally, the current account registered a surplus in the last quarter of the financial year, and foreign exchange reserves have been deemed ample.

(With inputs from agencies)