Key takeaways of Economic Survey: GDP growth pegged at 6-6.8% in FY24, 6.8% inflation not high to deter pvt consumption

Union Finance Minister Nirmala Sitharaman on Tuesday tabled the Economic Survey for the Financial Year 2022-23 on the first day of the Budget Session. She will present the Union Budget for the next financial year on Wednesday.

The Economic Survey said that the economy is expected to grow in the range of 6 per cent to 6.8 per cent in the coming financial year 2023-24. This is in comparison to 7 per cent this fiscal and 8.7 per cent in 2021-22.

Key takeaways of Economic Survey 2023-23:

Economic survey 2022-23 projects a baseline GDP growth of 6.5% in real terms in FY 24. "The actual outcome for real GDP growth will probably lie in the range of 6.0 per cent to 6.8 per cent, depending on the trajectory of economic and political developments globally," the survey read.

RBI’s projection of retail inflation at 6.8 per cent in the current fiscal is neither too high to deter private consumption, nor so low as to weaken inducement to invest, the Economic Survey said on Tuesday.

The Economic Survey document said the growth projection is broadly comparable to the estimates provided by multilateral agencies such as the World Bank, the IMF, the Asian Development Bank and the Reserve Bank of India.

The Economic Survey said that India remains the fastest-growing major economy in the world. GDP in nominal terms has been projected at 11 per cent in the next fiscal.

The Economic Survey said growth in FY23 was primarily driven by private consumption, higher capital expenditure, stronger corporate balance sheets, credit growth in small businesses and the return of migrant workers to cities.

The economy is expected to grow at 7 per cent (in real terms) for the year ending march 2023, this follows an 8.7 per cent growth in the previous financial year.

(With inputs from ANI)

READ | Budget 2023: Who prepares the Economic Survey of India and why?