Economic Survey 2023
Economic Survey 2022-23 was released on 31st January 2023, a day before the beginning of the Budget Session in Parliament. Economic Survey 2023 is written under the overall supervision of the Chief Economic Advisor of India, Shri V. Anantha Nageswaran. Hon. Finance Minister of India, Smt. Nirmala Sitharaman tabled the Economic Survey 2022-23 in Parliament.
Read More: Union Budget 2023–24
Economic Survey 2023 Highlights
The Economic Survey is a document presented by the government of India to the Parliament before the Union Budget. Check major Highlights of the Economic Survey 2023:
- Depending on global economic and political developments, India will experience GDP growth of 6.0% to 6.8% in 2023-24.
- In FY24, a baseline GDP growth of 6.5% is projected by the economic survey 2022-23.
- Following an 8.7% growth in the previous year, the economy is expected to grow by 7% (in real terms) for the year ending March 2023.
- During Jan-Nov 2022, micro, small, and medium enterprises (MSME) credit growth averaged over 30.5 per cent.
- In FY23, the central government’s capital expenditure (capex) increased by 63.4 per cent during the first eight months.
- It is projected that headline inflation will be 6.8 per cent in FY23, which is outside the target range set by the RBI
- The return of migrant workers helped the housing market witnessed a significant decline in inventory overhang to 33 months in Q3 of FY23 from 42 months in Q3 of FY22.
- The surge in growth of exports in FY22 and the first half of FY23 induced a shift in the gears of the production processes from mild acceleration to cruise mode.
- Private consumption as a percentage of GDP stood at 58.4 per cent in Q2 of FY23, the highest among the second quarters of all the years since 2013-14, supported by a rebound in contact-intensive services such as trade, hotel and transport.
- Economic Survey 2023 points to the lower forecast for growth in global trade by the World Trade Organization, from 3.5 per cent in 2022 to 1.0 per cent in 2023.
Read More: Union Budget 2023 for Agriculture Sector
Economic Survey 2022-23 Complete Analysis
The Economic Survey 2022-23 comes at times of a number of global uncertainties. The global threat of the pandemic still remains and the war in Ukraine is still on. These have resulted in the sharp rise of food, fuel and fertilizer price in the past year. As a response, central banks of advanced economies have resorted to tightening monetary policy. The situation of most economies of South Asia is stressful.
The second part of 2022 showed some signs of global economic recovery. This is supported by the fact that 2022–23 winters in the Northern Hemisphere are milder, leading to less than-expected demand rise for fuel in the global economy. There are also good signs of marginal decline in inflation in advanced economies like the USA. Experts are suggesting that we might narrowly escape global recession.
For India, 2022 was a positive year as the monsoon was good. India also climbed to become the 5th largest economy in the world. Advanced estimates suggest that in the financial year 2022-23, the Indian economy has grown by about 7%. Inflation is under the limit of 6% which is also a positive sign. Foreign Exchange Reserves are adequate and External Debt is also at a manageable level.
Read More: Union Budget 2023 for Railways
In this context, Survey gives an analysis of the Indian Economy, the gist of which is discussed here.
|State of Indian Economy||
|Medium-Term Growth Outlook of the Indian Economy||Economic Survey is optimistic about the medium-term growth outlook of the economy due to a number of important governance and structural reforms undertaken by the government in 2014-22 which has led to strong fundamentals of the economy. These reforms include :
|Fiscal Health of the Indian Economy||Economic Survey says that the fiscal health of the Indian Economy is in good shape as it is expected to achieve budget estimates for FY23. Despite fiscal pressures caused due to much-needed food and fertilizer subsidies, revenue from both direct and indirect taxes has remained robust. The central government has also managed to increase its capital expenditure despite fiscal pressures. Economic Survey 2023 suggests that this fiscal dexterity will bring rewards in the form of robust medium-term growth.|
|Money, Banking and Capital Markets||The monetary policy of RBI in the year 2022 saw a shift from policy tightening to gradual easing as the inflation rate came down. This was contrary to the global tightening cycle throughout the year, which is still continuing. Consequently, lending by Banks and FIs have increased the balance sheet clean-up exercise undertaken by RBI in the past and the establishment of the Insolvency and Bankruptcy Code by the government.
A similar encouraging trend was seen in Indian Capital Market when most capital markets across the world have fallen in 2022. This again can be attributed to the strong fundamentals of our economy.
Economic Survey predicts a virtuous investment cycle and credit upcycle in the coming FY. However, regulatory vigil must remain.
|Social Infrastructure||Economic Survey 2022-23 highlight that despite the challenges posed by the Covid-19 pandemic, the social infrastructure of the Indian Economy stands strong. This is evident from the following points :
Economic Survey 2022-23 cites the following reasons for the above positive trends :
|Climate Change||The survey suggests that India has shown global leadership towards emission reduction and climate change mitigation, despite contributing only 4% to global emissions. It lauds a number of steps taken by the government which include a net-zero emission goal by 2070, energy-saving targets notified in PAT, Green India Mission, protection of wetlands with 75 Ramsar sites, river conservation under Namami Gange Mission etc. We have also embarked on futuristic missions like National Hydrogen Mission and Green Hydrogen Policy.
Climate finance remains a challenge for India. To address this, the government is now tapping private capital.
|Agriculture||The survey discusses reasons why the performance of agriculture and allied sector has been robust in recent years. This is one reason we are able to provide free food grains to 81.4 crore beneficiaries free of cost under NFSA from January 1st 2023 for one year Our focus has shifted from food security to nutritional security and from agriculture production to agriculture productivity.
The survey makes a point for the expansion of animal husbandry, dairying and fisheries sectors as they have more potential for growth because of their emerging nature.
|Industry||The economic survey 2023 gives many reasons to believe that the Indian industrial sector is on a path of revival and high growth. Some of them include :
Economic Survey 2022-23 particularly highlights the performance and potential of the Electronics industry and Pharmaceutical industries. Key points include :
With companies adopting new manufacturing and supply chain strategies in the post-pandemic and Russia-Ukraine war scenario, India has the opportunity to portray itself as a global manufacturing hub. Government measures like Production Linked Incentive Scheme are efforts in the right direction.
|Services||This sector has rebound faster than expected. This was due to factors like universal vaccination, ease of mobility and the release of pent-up demand. A number of measures taken by the government are responsible for the long-term growth trajectory of the Indian service sector :
|External Sector||This sector faced a number of challenges in recent times. These included :
Although the sector has shown resilience, challenges are expected to remain in the coming year. Economic Survey suggests strengthening the fundamentals. National Logistics Policy, PM Gati Shakti, FTAs with the UAE, and Australia are efforts in the right direction.
|Infrastructure||The importance of the infrastructure sector in the economy is due to its multiplier effect. The Economic survey lauds the government’s proactive approach and commitment to boosting this sector. Some of these measures include :
Economic Survey Importance for UPSC Exam
Economic Survey is an authentic source of information with respect to the Indian Economy. Hence, any aspirant must place it above newspapers and magazines as far as the authenticity of facts and data is concerned.
Facts, figures and statements written in Economic Survey are sometimes directly quoted in prelims and mains exams.
General Studies Paper 3 of mains is generally considered dynamic. However, a proper reading of the survey can help an aspirant tackle the economy part of this paper with ease. Economic Survey highlights various challenges being faced by Indian Economy and also offers potential solutions for them. An aspirant can use these suggestions in concluding part of their answers in the main examination.
Economic Survey is written by experts in a very lucid, concise and precise manner. Thus, it provides relevant information and understanding in minimum words, which is also the demand of the UPSC exam.
Economic Survey of India 2022-23 PDF
Economic Survey 2022-23 is published by the Department of Economic Affairs, Ministry of Finance, Government of India. Economic Survey 2022-23 can be read here chapter-wise both in Hindi and English downloaded from the link provided here: Economic Survey 2022-23
Economic Survey UPSC
The Economic Survey of India is published annually by the Department of Economic Affairs, Ministry of Finance, Government of India. It is a document highlighting the state of the Indian Economy and medium and long-term growth prospects. Economic Survey also discusses challenges being faced in the Indian Economy and offers suggestions as to how they can be tackled. It highlights various measures that are being taken by the Government of India for the Economic and Social Development of India.