The Economic Survey will be tabled by FM Nirmala Sitharaman in Parliament on January 31.
Ahead of presenting Budget 2023, Finance Minister Nirmala Sitharaman will table the Economic Survey before Parliament on January 31. The key economic document will be parsed to understand the direction India's economy is headed in. The economic growth projections for FY24 will be awaited as slowdown in global markets is likely to chip away at India's exports, a key driver of the economic growth.Here are ten things to look forward to in the Economic Survey 2023:
1. Economic growth
The Economic Survey will be closely parsed for economic growth projections for the next fiscal (2023-24). The global macroeconomic headwinds are expected to impact India's exports, a key driver of economic growth. The raising of interest rates is also expected to dampen some of the pent up recovery seen in the current fiscal.
2. Fiscal consolidation roadmap
The Economic Survey is expected to weigh in on the fiscal consolidation roadmap of the government. Despite a higher subsidy bill in the current fiscal, the government is expected to meet its fiscal deficit target on the back of buoyant tax collections. A lower subsidy bill next fiscal on the back of falling energy prices is expected to help government stick to the fiscal deficit roadmap.
Economic Survey is an important document that sheds light on the health of the economy. The economy's overall debt burden spiked during COVID years as the government expanded the welfare push with the PM Garib Kalyan Yojana.
The Survey will provide key inputs on the sectoral performance of the economy like agriculture, services and industry. The recovery in the current fiscal has been led by pent up demand in the services sector as people flocked to restaurants and malls post COVID.
The Survey is expected to have a special chapter devoted to India's manufacturing ambition and Atmanirbhar push especially in the wake of shifti9ng global supply chains. Success stories like iPhone have shown that PLI has worked in making India an attractive hub for manufacturers.
Friendshoring is an important catchword of our times and the Economic Survey is expected to talk about this trend as countries in the West align their supply chains to more friendly countries. Janet Yellen used the word to in context of the growing economic partnership with allies that share the same value system.
Forex reserves have assumed significance lately as the rupee came under pressure due to the rising interest rates in the US leading to dollar strengthening. The RBI likely tapped into its forex kitty to sell dollars to keep the rupee from plunging deeper. That led to India's forex reserves dwindling close to a $100 billion from the high of $642.45 billion seen in 2021. However, they have recovered recently to touch $573 billion.
One of the most pressing issues before the global economy has been rising inflation. Central banks worldover fought the stubborn bout of inflation by raising interest rates. India's RBI also hiked rates to keep the inflation in check. Retail inflation in India softened in November and December and fell within the tolerance band of the RBI.
9. Private investment push
The Economic Survey is expected to talk about steps that can spur private investment in the economy. Capacity utilisation has gone up but investments from India Inc are still muted as heightened uncertainty takes a toll on important decisions. The survey will delineate the significance of government's capex as it has a multiplier effect.
The Survey is expected to devote significant attention to job creation and skill development. As India marches on the path to become a global economic powerhouse with manufacturing taking a drivers seat, skill development is going to assume a lot of importance. The Survey could provide a blueprint on how government can bring more people into the workforce. It is expected to deal with the issue of increasing women's participation in labour force.
Finance minister will present the Union Budget for 2023-24 on February 1, 2023.
