Key takeaways from the economic survey include:
– The outlook for India’s financial sector looks bright.
– Domestic growth factors supported economic growth in FY24 despite uncertainties in the global economy.
– Economic growth in FY2025 is expected to be between 6.5% and 7%.
– Escalation of geopolitical conflict and its impact may impact RBI’s monetary policy stance.
– India’s real GDP grew 8.2% in FY24 and exceeded 8% in three out of four quarters in FY24.
– CAD will be 0.7% of GDP in FY2024, improving from a deficit of 2.0% of GDP in FY2023.
– Retail inflation averaged 6.7% in FY23, declining to 5.4% in FY24.
– Gross fixed capital formation grew by 9 percent in real terms in 2023-24.
– Expectations of a normalizing monsoon and easing in global import prices support the Reserve Bank of India’s benign inflation forecast.
– Indian policies have navigated challenges well and ensured price stability despite global uncertainties.
– Stronger corporate and bank balance sheets will further strengthen private investment.
– Improved tax compliance, expenditure containment and digitalisation can help India strike a fine balance in managing government finances.
– Countries should loosen their grip in areas where there is no need to unleash and strengthen their capabilities.
– Power is a valuable asset for governments. Governments could give up at least some of their power and enjoy the lightness it creates.
– As the financial sector undergoes significant transformation, we need to prepare for potential vulnerabilities that may emerge globally or regionally.
– Capital markets will play a key role in India’s growth story, making the market resilient to global geopolitical and economic shocks.
– Gross fixed capital formation increased by 9 percent in real terms in 2023-24.
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