Context: Recently, the Finance Ministry released a report titled, “ Indian Economy Review 2024 “ prepared by the Chief Economic Adviser office.

About Indian Economy Review 2024

• Not a Economic Survey: It is not an Economic Survey of India, which it says will be presented before the full Budget after the general elections.
• Why no Economic Survey This Year: 2024 is an election year and the regular Budget process may be disrupted if there is a change in government.

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• • Economic Survey is a document prepared by the Chief Economic Advisor (CEA) and presented by the Finance Minister in Lok Sabha, typically a day ahead of the Union Budget on February 1 each year. 

Download Indian Economy Review Summary PDF

Theme of Indian Economy Review 2024

It is divided into two main chapters, each detailing various aspects of India’s economic development, challenges, and resilience.

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Summary of Indian Economy Review 2024

1. Economic Growth Projections: Indian Economy Review 2024

India’s economic journey over the past decade has been remarkable, elevating it from the 10th to the 5th largest global economy. This trajectory is underpinned by a robust growth rate, projected at 7% for FY24, and likely continuing into FY25. The optimism is echoed by global agencies like S&P Global Ratings, highlighting India’s potential as the fastest-growing major economy.

• FY24 Growth Rate: Projected at 7%, potentially extending into FY25.
• Historical Growth: 7.2% growth in FY23 and 8.7% in FY22.
• Global Outlook: Optimism from agencies like S&P Global Ratings, predicting India as the fastest-growing major economy for three years.
• Domestic Demand: Strength in private consumption and investment.
• Reforms Impact: Last decade’s government reforms credited for economic robustness.
• Supply Side: Infrastructure investments and manufacturing boost.
• Stock Market: India became the world’s fourth largest stock market in the world by market capitalisation, overtaking Hong Kong. 

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2. Potential as World’s Third-Largest Economy: Indian Economy  Review 2024

Looking towards 2030, India is poised to become the world’s third-largest economy, targeting a $7-trillion GDP. This aspiration is supported by the rapid development in public sector infrastructure, financial health, and initiatives like Jan Dhan Yojana, which has significantly improved household financial stability and inclusive development.

• 2030 Outlook: India could surpass Japan and Germany, becoming the third-largest economy.
• GDP Target: Aim to reach a $7-trillion economy by 2030.
• Public Sector Investment: Significant increase in infrastructure investment over the last decade.
• Financial Sector: Strong and healthy, with growing non-food credit.
• Jan Dhan Yojana: Fifty-one crore bank accounts under Jan Dhan Yojana now have total deposits of over ₹2.1 lakh crore. 
  • Over 55 per cent of them are women. 
• Net Financial Assets: Improvement in household financial assets to GDP ratio.
• India is the third-largest fintech economy in the world after the USA and the UK.

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3. Challenges and Opportunities: Indian Economy Review 2024

Challenges such as geopolitical conflicts, supply chain disruptions, and the global shift towards AI and green energy are acknowledged. However, India’s effective management of COVID and its balanced approach towards energy transition demonstrate its resilience and adaptability.

• Global Risks: Geopolitical conflicts and supply chain disruptions.
• Technological Progress: AI and global manufacturing shifts.
• Energy Transition: Balancing economic growth and green energy initiatives.
• Vaccination Impact: Contributed to quick economic recovery.
• Oil Supply Management: Notable in maintaining economic stability.

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4. Future Outlook: Indian Economy Review 2024

The future outlook is bright, with rising aspirations among Indians, a healthier financial sector, and an anticipated continuous GDP growth above 7%, reflecting India’s strong economic fundamentals and potential for further growth.

• Aspirations and Confidence: Rising expectations among young Indians.
• All-inclusive Welfare Approach: It  is expected to contribute to the enlargement of the consumption base through the expansion of the middle class.
• GDP Growth Above 7%: Possible in the coming years, driven by structural reforms and financial sector strength.
• Hyper-globalisation Shift: Moving away from global manufacturing dependency.
• Artificial Intelligence Impact: Challenges in service trade and employment.
• Energy Transition: Balancing economic growth with green energy initiatives.

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