Current Affairs 2023 – Current Affairs for January 2023
Economic Survey 2023 – Chapter-wise Study
Table of Contents
As per the official website of Ministry of Finance The Economic Survey projects a baseline GDP growth of 6.5 per cent in real terms in 2022-23 FY2024. The website also indicates that the India to witness GDP growth of 6.0 per cent to 6.8 per cent in 2023-24 based on global economic and political developments. The economy is expected to grow at 7 per cent for the year ending March 2023, following a growth of 8.7 per cent in the previous fiscal. In this blog we are trying to discuss all the important highlights of the Economic Survey so stay with the blog.
The Economic Survey is important because this survey report published when our nation is celebrating their 75th year of its independence. According to the Economic Survey report for the FY 2023-24 India is back to pre-pandemic growth with broad based recovery. The services sector of India continues to the source of strength with 9% growth in current year and Tax upthrust is a now being witnessed under GST collection.
According to the latest Economic Survey report 2023 shows positive growth despite the three major shocks from COVID-19, Russian-Ukraine conflict and Central Banks handling of the three major shocks as the Federal Reserve hiked the policy rate to curb inflation . Despite that the worldwide agencies project India as fastest growing major economy at 6.5 to 7.0 per cent in FY2023 due to appreciation of US dollar and widening of the current account deficit (CAD) in net management of importing economies continues to project.
The Important Highlights of the Economic Survey – 2023 as under –
01) The recovery phase of the Indian economy is completed –
India is poised to do well in this decade on the back of reforms initiated by the government in the last eight years, Chief Economic Advisor V Ananth Nageswara said after Finance Minister Nirmala Sitharaman tabled the Economic Survey 2023 in Parliament. —-Read in Details —
02 India’s Medium-Term Growth Outlook – With Optimism and Hope
The Indian economy has gone through a transformational process of new age reforms in the last eight years. These diverse policies converge towards improving the overall efficiency of the economy and increasing its potential growth. To achieve the overarching policy objective of unleashing the productive potential of the economy and its people, the reforms are aimed at enhancing the ease of living and doing business at a fundamental level. The use of technology (especially digital technology) underlies the reforms. The economic energy –Read in Details–
03. Fiscal Developments and outlook of India | Economic Survey – 2023 –
The Union Budget for FY23 was presented in an uncertain macroeconomic environment. Soon after its presentation, the geopolitical conflict aggravated global supply disruptions and adversely impacted the prices of fuel, food, and other essential commodities. The Government of India’s fiscal policy response to the crisis comprised of a judicious mix of increasing food and fertilizer subsidies on the one hand and a reduction in taxes on fuel and certain imported products on the other. Despite these additional fiscal pressures during the year, the Union Government—–Read in Details —
04. Monetary Management and Financial Intermediation –
The monetary management policy has played a very supporting role to the fiscal policy as well as to the government during the onset of the pandemic in the country. The concerted effort by the Reserve Bank of India to lower the rates and the fiscal authority in providing fiscal stimulus, rather than any objective of the pandemic, is the result of the pandemic which has largely been helpful in boosting economic growth. RBI has taken measures since February 2020 to enhance liquidity with the objective of ensuring smooth functioning of financial markets and maintaining adequate flow of credit to the economy. Among the major policy rates—–Read in Details —
05. Prices and Inflation – Successful Tight-Rope Walking | Economic Survey 2023
In the Economic Survey report 2023 the chapter related to prices and inflation has been called “Successful walk on a Tight Rope“. One of the formidable challenges faced relates to the efforts of the Reserve Bank of India (RBI) to stabilize the economy despite high inflation rates and currency depreciation, albeit without compromising on growth. While a verdict on the success is still awaited. The Finance Ministry has appreciated the efforts of the Reserve Bank of India to bring down the inflation rate in the country. Monetary Policy Committee (MPC) provides—–Read in Details —
06. Social Infrastructure, Employment and Human Development
Today is the day when humanity has once again taken small steps to move forward and get a semblance of normalcy after the massive unprecedented disruptions on human life due to the global pandemic of 2022 like Covid-19. The name has been given to this chapter is “The Big Tent”. However, it is true that the post-pandemic challenges and try to stable the economic growth rate but the ensuing Russia-Ukraine conflict have affected the growth trajectory of India as well as the world. Social well-being of the citizens like health, education and social security etc. which emphasized on the major aspects of Govt—–Read in Details —
07. Climate Change and Environment – Preparing to Face the Future | Economic Survey 2023
“Preparing the Face of the Future” a very meaningful title is given to this chapter by the economic survey commission. The changes occurred in the climate is not the problem of one country but the whole world is responsible for this change but it can be resolve with joint hand of the world. It seems that the Climate change is primarily attributed to disproportionately high cumulative emissions, both historical and high per capita annual emissions of greenhouse gases (GHGs) of the developed countries. The global nature of the problem makes India one of the most vulnerable regions despite having contributed only about 4 per cent in the cumulative global emissions (for the period 1850-2019) and maintaining its per capita emission at far less than the world average. While India is less responsible for the high stock of emissions, however —Read in Details —
08. Agriculture and Food Management | Economic Survey 2023
Agriculture is a very important component to measure the financial development of any country’s economy in the world because agriculture participates to generate income as well as employment that’s why the agriculture and its allied sector is still the main component of the growth of Indian economic. In India the agriculture remain an important part as it continues to play its role in providing employment, income and most importantly national food security. The contribution of agriculture to the national income was 18.2% in the financial year 2014-15. Which has gradually reduced to 16.5% in the financial year 2019-20. This does not mean that agricultural production has decreased in India, but it reflects the structural changes and development process taking place in the economy. To achieve the objective of doubling the income of the farmer, it is—Read in Details —
09. National Economy Showed a Steady Recovery in Industries | Economic survey 2023
From the beginning of the Indian Economy the industries have a prominent place. If we talk about the contribution of industries in the total gross value of the country’s economy, then it has to be say that the contribution of about 30 percent in the total gross value of the country’s economy comes from industrial sectors only. But the Indian industry faced some extraordinary challenges in Financial Year 2023 as first the pandemic and then the sudden outbreak of the Russian-Ukraine conflict. Due to all this, there was a sudden jump in the prices of commodities in the international market. In which the prices of edible oil, crude oil, fertilizers and food grains are included and these prices remained at a high level for many months. The risk of another——–Read in Details –—
10. Services – A Source of Strength | Economic Survey – 2023
India’s services sector witnessed a rapid rebound in Financial Year 2022-23 driven by growth in the contact-intensive services sub-sector, which bore the maximum burden of the pandemic. The sub-sector fully recovered from pre-pandemic levels in the second quarter of the financial year 2022-23 and driven by pent-up demand, easing of mobility restrictions and near-universal vaccination coverage. Going forward with strong momentum growth and a rise in the High-Frequency Indicator (HFI) for the contact-intensive services sector indicate a strong growth opportunity in the next financial year. PMI Services, an indication of service sector activity has also—-Read in Details –—
11. External Sector – Watchful and Hopeful | Economic Survey – 2023
According to the Economic Survey 2023, it is being predicted that India’s external sector has been affected by unexpected shocks for some time and uncertainty has increased in this sector. However, now global commodity prices are declining and international financial conditions are tightening, despite increasing volatility in financial markets, reversal of capital flows, currency depreciation, and slowing global growth and trade. However, the Economic Survey 2023 claims that India’s external sector has been able to weather these headwinds due to strong macroeconomic fundamentals and the strength of the buffers.
India’s exports show resilience to reach record level during FY 2022-23 till December 2022-–Read in Details –—
12. Physical and Digital Infrastructure – Lifting Potential Growth
The Physical and Digital Infrastructure chapter of the Economic Survey begins with a story that the invention of the wheel triggered the need for travelable roads and since then the infrastructure saga has spread from canals to modern capital structures like railways, roads etc. happened depending on the requirements of the area. In the last 75 years in India since independence, infrastructure development has gone on a steady growth curve, creating assets needed by the nation in areas such as transport, housing, commercial development, telecommunications and more recently sanitation. Used to be. As a key enabler of socioeconomic development of a region, the government has harnessed ‘social overhead capital’ to further development in remote areas of the country through dedicated budgetary allocations–————-Read in Details –—
13. Renewables Energy and Electricity Sector | Economic Survey 2023
Renewable energy sources are a strategic national resource as stated in the Economic Survey 2023 and the Finance Minister added in her speech that “Using these resources is essential to further strengthen social equity and energy security”. Using Renewable energy can help build a stronger economy and prevent climate change also. Achieving self-sufficiency in energy through sources of the renewable energy is part of the vision of the Government of India. The survey also states that while increasing access to energy is important, it is also essential that it comes at very low cost and environmental friendly. As has historically been the case in advanced economies-—————Read in Details –—
14. National Logistics Policy – Framework to Make Globally Competitive | Economic Survey 2023
In the Economic Survey 2023 the logistic sector is also highlighted because the government believe that the logistics sector has the huge potential from a development viewpoint as it is crucial in every segment whether it may be the transportation of medical equipment’s, medicines, agriculture products, to make success of e-commerce and manufacturing industries. The government indicates that the logistics industry is the backbone of the Indian economy but it’s contributes to the GDP is only near about or less than 15% of GDP. The government also pointed out that when the logistics sector is so important part to our economy but there exists a competitive gap of $180 billion per annum. The government also emphasis that there is a need to make efforts to bring development in the logistics sector. India is currently the fifth-largest economy in the world and-——-Read in Details –—
15. India’s Digital Public Infrastructure | Economic Survey – 2023
Lastly, the Economic Survey 2023 emphasizes on Digital Engagement between the public and the government as the global crisis in the last few years like the outbreak of the Covid-19 pandemic across the globe, the emergence of new challenges like the Russia-Ukraine war , the threat posed by climate change, the looming external debt crisis and the rising cost of living have affected the lives of the general public. These challenges have affected our society as well. Although the policy makers have done some lip service to show that the situation has emerged, but in reality the situation is still not normal. In the Economic Survey 2023, the government has highlighted the power of carefully designed Digital Public Infrastructure (DPI) to provide some transformative solutions, saying that the potential for DPI––Read in Details –—
Read Important Point to Prepare Exam Notes
Digital Public Infrastructure of India
National Logistics Policy
Renewable Energy and Power Sector