Economic Survey tabled in Lok Sabha, expected growth 6.5 pc, 'ensuring price stability despite global uncertainties'

India's Finance Minister Nirmala Sitharaman has tabled the Economic Survey 2024 in the Lok Sabha and will present it in the Rajya Sabha around 2:00 pm. Following this, Chief Economic Adviser Anantha Nageswaran will hold a press conference. The Economic Survey projects a conservative growth estimate of 6.5 to 7 per cent, lower than last year's 8.2 per cent.

The Economic Survey, a pre-Budget document presented a day before the Union Budget, provides an overview of the state of the economy. Prepared by the Economic Division of the Department of Economic Affairs in the Ministry of Finance under the supervision of the chief economic adviser, the Survey offers insights into what to expect in the Union Budget, which Sitharaman will present on July 23, Tuesday. The government expects the economy to grow between 6.5 and 7 per cent in FY25.

Key highlights from the Economic Survey include:

• The outlook for India's financial sector remains bright, with domestic growth drivers supporting economic growth in FY24 despite global uncertainties.
• The economy is expected to grow at 6.5-7 per cent in FY25.
• Geopolitical conflicts and their impacts may influence the RBI’s monetary policy stance.
• Expectations of a normal monsoon and moderating global prices of imports support the RBI's benign inflation projections.
• India’s policies have effectively navigated challenges, ensuring price stability despite global uncertainties.
• Healthier corporate and bank balance sheets will further strengthen private investment.
• Gains in tax compliance, expenditure restraint, and digitization have helped India achieve a balanced fiscal management.
• The Survey suggests that states should reduce their involvement in areas where it is unnecessary, freeing up capacity and enhancing capability.
• Governments should consider relinquishing some control to enjoy the benefits of a more streamlined and efficient system.