The Economic Survey 2023–24, which projects 6.5-7.0% GDP growth this year, presents a positive image of the Indian economy. We anticipate that growth will surpass 7% for the fourth year in a row if exports significantly rebound in the upcoming months and if private investment increases.
To encourage economic growth, the Survey has appropriately concentrated on six sectors for a fresh policy push in the Amrit Kaal. Agriculture, MSMEs, private investment, funding for the green transition, closing the employment-education gap, and enhancing state capacity for efficient policy execution are these six sectors.
Regarding the strength of domestic private sector investment and foreign direct investment in the upcoming years, the Survey is upbeat. The Survey’s prediction that India will become the global center for financial services is encouraging.
MSMEs are the foundation of the economy, as the Survey correctly notes, and it has highlighted the need of deregulation and digitization for this sector.
MSMEs generate 11 crore jobs, 30% of the GDP, and 45% of the manufacturing sector. The MSME sector is subject to “extensive regulation and compliance requirements,” as the Survey notes. To support the sector’s expansion and employment creation, the survey recommends streamlining state-level licensing, inspection, and compliance processes for the MSME sector.
