Economic Survey 2023: Here are the key highlights

The Economic Survey for 2023-24 was tabled in the Parliament on Tuesday, January 31, 2023, a day ahead of the Union Budget which will be presented by the Finance Minister Nirmala Sitharaman on Wednesday February 1, 2023. The Economic Survey is an annual report card of the economy, which is presented a day before the budget and examines the performance of each and every sector and then suggests future moves.

Here are the key highlights of the Economic Survey -

• India's economy to grow 6.5% in 2023-24, compared to 7% this fiscal and 8.7% in 2021-22. Gross domestic product (GDP) in nominal terms to be 11% in next fiscal
• Growth driven by private consumption, higher capex, strengthening corporate balance sheet, credit growth to small businesses and return of migrant workers to cities
• Real GDP growth to be in the range of 6-6.8% next fiscal depending on global economic, political developments 
• Challenge to rupee depreciation persists with the likelihood of further interest rate hikes by the US Fed
• Current account deficit (CAD) may continue to widen as global commodity prices remain elevated, economic growth momentum stays strong. If CAD widens further, rupee may come under depreciation pressure

The country's current account deficit widened to 4.4% of the GDP in the quarter ending September, from 2.2% of the GDP during the April-June period due to a higher trade gap, according to the latest Reserve Bank of India (RBI) data.

• India has sufficient forex reserves to finance CAD and intervene in forex market to manage rupee volatility
• The growth in exports has moderated in second half of current fiscal; the surge in growth rate in 2021-22 and first half of current fiscal led to production processes shifting gears from 'mild acceleration' to 'cruise mode' 
• Slowing world growth, shrinking global trade led to loss of export stimulus in the second half of current year 
• Bank credit growth likely to be brisk in FY24 on back of benign inflation, moderate credit cost 
• Credit growth to small businesses high at over 30.5% in January-November, 2022
• Central govt capex grew 63.4% in April-November of current fiscal
• Stock market gave positive returns in calendar year 2022 unfazed by FPI withdrawal
• Private consumption, capital formation led economic growth in current fiscal has helped generate employment; urban employment rate declined, while Employee Provident Fund registration rose
• The Survey said that 'entrenched inflation' may prolong the tightening cycle and therefore borrowing costs may stay higher for longer