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Finance Minister Nirmala Sitharaman on Monday presented the Economic Survey 2023-24, along with the statistical appendix in the Lok Sabha.

 

The Economic Survey is an annual document presented by the government ahead of the Union Budget to review the state of the economy.

 

The document also provides an overview of the short-to-medium-term prospects of the economy.

 

The Economic Survey is 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 first Economic Survey came into existence in 1950-51 when it used to be a part of the budget documents.

 

In the 1960s, it was separated from the Union Budget and tabled a day before the presentation of the Budget.

 

Moreover, the Economic Survey states that India’s GDP (Gross domestic product) is likely to grow at 6.5 to 7 per cent in the current fiscal year amid global challenges which may impact exports.

 

The growth projected for 2024-25 is lower than the economic growth rate of 8.2 per cent estimated for the previous financial year.

 

The Reserve Bank has projected the GDP growth for the fiscal year ending March 2025 at 7.2 per cent.

 

Global agencies like IMF (International Monetary Fund) and ADB (Asian Development Bank) see India to grow at 7 per cent.

 

…the Survey conservatively projects a real GDP growth of 6.5–7 per cent, with risks evenly balanced, cognizant of the fact that the market expectations are on the higher side,” said the document tabled by Finance Minister Nirmala Sitharaman in Parliament.

 

The Survey also added a note of caution saying “private capital formation after good growth in the last three years may turn slightly more cautious because of fears of cheaper imports from countries that have excess capacity”.

 

While merchandise exports are likely to increase with improving growth prospects in advance economies, services exports are also likely to witness a further uptick.

 

Moreover, the Union Budget for 2024-25 will be presented by Sitharaman on Tuesday.