Economic Survey 2023: These Are The Drivers Of Economic Growth

The economic survey, tabled by Finance Minister Nirmala Sitharaman in Parliament on Tuesday, highlighted India’s economic resilience, mentioning that the country has nearly recovered from the pandemic. Along with forecasting India’s economic growth for the next fiscal, the survey also presented the drivers of the growth in the coming years. It also said that the current account deficit (CAD) needs to be closely monitored. The economic survey said that Production Linked Incentive (PLI) scheme, PM Gati Shakti and National Logistics Policy are expected to play big roles in improving India’s cost and export competitiveness in the years ahead.

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“Growth is expected to be brisk in FY24 as a vigorous credit disbursal, and capital investment cycle is expected to unfold in India with the strengthening of the balance sheets of the corporate and banking sectors,” said the survey.

“Further support to economic growth will come from the expansion of public digital platforms and path-breaking measures such as PM GatiShakti, the National Logistics Policy, and the Production-Linked Incentive schemes to boost manufacturing output,” it added.

The pre-Budget survey said that India’s growth in FY23 has been principally led by private consumption and capital formation, which helped generate employment.

It also said that the Emergency Credit Linked Guarantee Scheme shielded India’s micro, small and medium enterprises from financial distress, with their quick recovery supported by “remarkably high” credit growth. It was reflected in the rise of goods and services tax paid by the units, the economic survey said.

“The credit growth to the micro, small and medium enterprises sector has been remarkably high, over 30.6 per cent on average during January-November 2022, supported by the extended Emergency Credit Linked Guarantee Scheme (ECLGS) of the Union government”.

India has more than six crore micro, small and medium enterprises that employ close to 12 crore workers across sectors and industries while contributing nearly 35 per cent to the country’s gross domestic product (GDP).