Nirmala Sitharaman Tables Economic Survey Report, Expects Real GDP Growth Of 6.5 To 7 Per Cent In Conservative Analysis

The Economic Survey 2023-24 was tabled by Finance Minister Nirmala Sitharaman in Lok Sabha today (22 July) ahead of the Union Budget scheduled for tomorrow.

The survey conservatively projects real GDP growth of 6.5 to 7 per cent in Financial Year 2024-25 (FY25), "with risks evenly balanced, cognisant of the fact that the market expectations are on the higher side."

This is in line with the economic growth of 7 per cent projected by the International Monetary Fund (IMF). However, the survey cautions against disruptions due to geopolitical conflicts,

"The global trade outlook for 2024 remains positive, with merchandise trade expected to pick up after registering a contraction in volumes in 2023," the survey says.

However, it does not expect hiring in the Information Technology (IT) sector to "pick up significantly" after slowing down in FY24. It expects exports of business, consultancy and IT-enables services to expand.

"Domestic growth drivers have supported economic growth in FY24 despite uncertain global economic performance. Improved balance sheets will help the private sector cater to strong investment demand," it adds.

The Economic Survey says, "Inflationary pressures stoked by global troubles, supply chain disruptions, and vagaries of monsoons have been deftly managed by administrative and monetary policy responses."

"Government's thrust on capex and sustained momentum in private investment has boosted capital formation growth. Gross Fixed Capital Formation increased by 9 per cent in real terms in 2023-24," it says.