Finance Minister Nirmala Sitharaman presented the pre-budget document in Parliament today, just one day before the Budget presentation on July 23. Here’s what you need to know:
What is an Economic Survey?
The Economic Survey is an annual report that assesses the country’s financial performance over the previous fiscal year. It is compiled by the Economic Division of the Department of Economic Affairs within the Finance Ministry, under the supervision of the Chief Economic Advisor (CEA), currently V. Anantha Nageswaran.
Why is Economic Survey significant?
The Economic Survey is crucial as it forms the basis for budgetary decisions by supplying vital data that shapes budget proposals. It ensures that fiscal policies are aligned with current economic conditions and long-term objectives. The survey’s findings often influence policy priorities, tax reforms, spending distributions, and initiatives designed to promote economic growth and development.
Who prepares the Economic Survey?
The Economic Survey is prepared by the Economic Division of the Department of Economic Affairs within the Ministry of Finance, under the supervision of the Chief Economic Adviser.
What does the Economic Survey include?
The Economic Survey provides insights into the current state of the economy and various economic indicators. It also offers projections for the upcoming year.
How is the Economic Survey document composed?
The Economic Survey consists of two sections. The first part covers the country’s economic developments and challenges, providing a comprehensive review of the economy. The second part focuses on the financial performance of the previous year.
Economic Survey on FDI
The Economic Survey 2024 highlights that Foreign Direct Investment (FDI) remains robust. According to RBI data on India’s Balance of Payments, foreign investment interest, indicated by dollar inflows of new capital, was $45.8 billion in FY24, slightly down from $47.6 billion in FY23, aligning with global trends. Reinvestment of earnings remained constant, while repatriation of investment increased from $29.3 billion in FY23 to $44.5 billion in FY24.
#WATCH | Economic Survey 2023-2024 tabled in Lok Sabha by Union Finance Minister Nirmala Sitharaman. pic.twitter.com/XxBVhgW4Lq
— ANI (@ANI) July 22, 2024
Employment Readiness of Graduates
The Economic Survey notes that about half of Indian graduates are not immediately employable upon completing their education. Although the services sector continues to be a significant job creator, the construction sector’s importance has been growing. The manufacturing sector’s job creation has been limited over the past decade due to the burden of bad loans but has shown a recovery since 2021-22.
Stability of the Indian Economy
The Economic Survey 2024 states that the Indian economy is stable and resilient, despite facing geopolitical challenges. The economy has solidified its post-Covid recovery, with policymakers maintaining economic and financial stability through fiscal and monetary measures. However, sustained recovery will require significant domestic efforts, as the international environment has become challenging for reaching agreements on crucial issues like trade, investment, and climate change.
Nirmala Sitharaman on Ease of Doing Business
Finance Minister Nirmala Sitharaman stated, “Several measures have been implemented to enhance the Ease of Doing Business. Among the 11 key steps highlighted, the most significant is the decriminalization of 63 offences. This change has enabled companies to operate without the constant concern of compliance issues. Additionally, a central processing system has been established.”
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