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Economic survey of India 2023-24 or The Indian Economy: A Review – January 2024 (Before Interim budget for FY 2024-25)

In an election year in India, the budget and economic survey presentation follow a different approach compared to a non-election year. Here’s what generally happens:

  1. Interim Budget: Instead of a full budget, the government presents an Interim Budget if the general elections are due in the same year. This is essentially a temporary budget, which allows the government to meet its expenses until the new government is formed post-elections. The Interim Budget typically includes an account of the income and expenses expected during this interim period.
  2. Vote on Account: The Interim Budget is often accompanied by a ‘Vote on Account’, which seeks the Parliament’s approval for incurring expenses for a part of the year. This is necessary because the government cannot withdraw money from the Consolidated Fund of India without the Parliament’s sanction.
  3. Economic Survey: In an election year, the presentation of the Economic Survey may also be affected. The Economic Survey, usually presented a day before the Union Budget, is an annual document that outlines the country’s economic development over the past year. However, in an election year, there might be changes to its presentation. As seen in 2024, instead of the traditional Economic Survey, a document titled “Indian Economy – A Review” was released. This can happen to avoid the potential politicization of the survey in the election atmosphere and to leave the task of a detailed survey and budget to the incoming government.
  4. Post-Election Budget: Once the new government is formed post-elections, a full budget is usually presented. This budget provides a detailed account of the government’s revenue and expenditure for the entire fiscal year. It also includes major policy announcements and economic measures that the new government plans to implement.

In summary, in an election year like 2024 in India, instead of the full budget and traditional Economic Survey, an Interim Budget and an alternative economic document (like “Indian Economy – A Review”) are presented. The full budget and a detailed economic survey are deferred until after the elections when the new government is in place.

The Economic Survey of India for 2024 was not presented in its traditional format ahead of the interim budget due to the general elections. Instead, the government released a report titled “Indian Economy – A Review.” Key highlights include:

  1. India is on track to become a $5 trillion economy in the next three years, with potential to reach $7 trillion by 2030.
  2. Anticipated GDP growth rate for FY24 is over 7.2%, surpassing global growth rates.
  3. Structural reforms have led to increased public sector investment and financial sector growth.
  4. India has become the third-largest fintech economy globally and now ranks fourth in global stock market standings.
  5. The Pradhan Mantri Jan Dhan Yojana has significantly increased the number of women holding bank accounts.
  6. Female labor force participation and higher education enrolment have shown remarkable growth.
  7. MSMEs are experiencing dynamism due to supportive government measures, GST implementation, and improved economic efficiency.
  8. The report maintains a cautious outlook on future growth and inflation, considering global uncertainties

Download Full The Indian Economy: A Review – January 2024

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