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Economic Survey 2022-23: Key Highlights

Following are the highlights of the Economic Survey 2022-23 tabled in Parliament on Tuesday.

<div class="paragraphs"><p>India's economy is estimated to clock a growth of 9.2 per cent in terms of real GDP for FY22, official data showed on Friday.</p></div>
India's economy is estimated to clock a growth of 9.2 per cent in terms of real GDP for FY22, official data showed on Friday.

Following are the highlights of the Economic Survey 2022-23 tabled in Parliament on Tuesday:

  • India's economy to grow 6.5% in 2023-24, compared to 7% this fiscal and 8.7% in 2021-22

  • India to remain the fastest growing major economy in the world

  • GDP in nominal terms to be 11% in next fiscal

  • Growth driven by private consumption, higher capex, strengthening corporate balance sheet, credit growth to small businesses and return of migrant workers to cities

  • India third largest economy in PPP (purchasing power parity) terms, fifth largest in terms of exchange rate

  • Economy has nearly 'recouped' what was lost, 'renewed' what had paused, and 'renerengised' what had slowed during the pandemic and since the conflict in Europe

  • Real GDP growth to be in the range of 6-6.8% next fiscal depending on global economic, political developments

  • India's recovery from the pandemic was relatively quick, growth next fiscal to be supported by solid domestic demand, pick up in capital investment

  • RBI projection of 6.8% inflation this fiscal outside the upper target limit, not high enough to deter private consumption, also not too low to weaken inducement to invest

  • Borrowing cost may remain 'higher for longer', entrenched inflation may prolong tightening cycle

  • Challenge to rupee depreciation persists with the likelihood of further interest rate hikes by the US Fed

  • CAD may continue to widen as global commodity prices remain elevated, economic growth momentum stays strong

  • If CAD widens further, rupee may come under depreciation pressure

  • Overall external situation to remain manageable

  • India has sufficient forex reserves to finance CAD and intervene in forex market to manage rupee volatility

  • Elevated downside risks to global economic outlook as inflation persisting in advanced economies and hints of further rate hikes by central banks

  • Inflation did not 'creep too far above' tolerance range compared to several advanced nations

  • The growth in exports has moderated in second half of current fiscal; the surge in growth rate in 2021-22 and first half of current fiscal led to production processes shifting gears from 'mild acceleration' to 'cruise mode'

  • Slowing world growth, shrinking global trade led to loss of export stimulus in the second half of current year

  • Schemes like PM KISAN, PM Garib Kalyan Yojana significantly contributed to lessening impoverishment

  • Credit disbursal, capital investment cycle, expansion of public digital platform and schemes like PLI, National Logitics Policy and PM Gati Shakti to drive economic growth

  • Bank credit growth likely to be brisk in FY24 on back of benign inflation, moderate credit cost

  • Credit growth to small businesses remarkably high at over 30.5% in January-November, 2022

  • Housing prices firming up after release of pent-up demand, decline in inventories

  • Central govt capex grew 63.4% in April-November of current fiscal

  • India's economic resilience has helped it withstand the challenge of mitigating external imbalances caused by the Russia-Ukraine conflict without losing growth momentum

  • Stock market gave positive retruns in calendar year 2022 unfazed by FPI withdrawal

  • India withstood extraordinary set of challenges better than most economies

  • After a dip in FY21, GST paid by small businesses has been rising and now crossed pre-pandemic levels reflecting the effectiveness of targeted government intervention

  • Private consumption, capital formation led economic growth in current fiscal has helped generate employment; urban employment rate declined, while Employee Provident Fund registration rose.