Economic Survey 2023 – These Are the Drivers Of Economic Growth
According to the pre-Budget survey, India’s growth in FY23 was primarily driven by capital formation and private consumption.
The Economic Survey, presented by Nirmala Sitharaman, Finance Minister, was tabled in Parliament Tuesday. It highlighted India’s economic resilience and mentioned that it has almost recovered from the pandemic. The survey not only forecasted India’s economic growth for next fiscal but also identified the key drivers of growth over the next few years. The current account deficit (CAD), as well as its implications, should be closely monitored. According to the economic survey, Production Linked Incentive scheme, PM Gati Shaakti and National Logistics Policy will play major roles in India’s export and cost competitiveness over the next few years.
According to the survey, growth is expected in FY24 due to a robust credit disbursal and capital investment cycle in India. This is aided by strengthening balance sheets in the corporate and banking sector.
It added that “Further support for economic growth will be provided by the expansion of public digital platforms, path-breaking measures like PM GatiShakti and the National Logistics Policy and the Production-Linked Incentive Schemes to boost manufacturing output,”
According to the pre-Budget survey, India’s growth in FY23 was primarily driven by capital formation and private consumption. This helped create employment.
The Economic Survey also stated that the Emergency Credit Linked Guarantee Scheme protected India’s small, medium and micro enterprises from financial distress. Their quick recovery was supported by “remarkably high credit growth.” According to the economic survey, it was evident in the increase of the goods and services taxes paid by units.
“The credit growth in the micro, small, and medium enterprise sector has been remarkable high, more than 30.6 percent on average between January and November 2022. This was supported by the extended Emergency Credit Linked Guarantee Schemes (ECLGS), of the Union government.”
India boasts more than six million micro, small and mid-sized enterprises. These businesses employ nearly 12 crore people across all sectors and industries. They also contribute almost 35 percent to the country’s gross domestic product (GDP).