Union Finance Minister Nirmala Sitharaman has presented the Economic Survey for 2023-2024 in the Lok Sabha, forecasting that India’s real GDP will grow between 6.5% and 7% in the upcoming fiscal year. This projection aligns closely with the International Monetary Fund’s estimate of 7%.
The Economic Survey stated, “We conservatively project real GDP growth of 6.5–7%, considering that market expectations are on the higher side, with risks balanced.”
Inflation Insights
The survey also addressed inflation trends, noting that core inflation has remained persistently high due to rising service costs and a robust labor market, particularly across most Asian economies. Despite these pressures, the Economic Survey highlighted a decline in retail inflation, which dropped to 5.4% in FY24 from 6.7% in FY23. This improvement was attributed to effective management of global disruptions, supply chain issues, and the impact of variable monsoon patterns through administrative and monetary policy measures.
Capital Expenditure And Investment
On the topic of capital expenditure, the survey applauded the government’s focus on boosting investment. It reported a significant increase in Gross Fixed Capital Formation, which rose by 9% in real terms during 2023-24. This rise in capital formation reflects the positive effects of both government initiatives and sustained private investment on overall economic growth.