The Budget Session of Parliament began at 11 am today i.e. on 31 January, 2023. President of India Droupadi Murmu addressed both houses in a joint session. The Economic Survey was tabled with projections for economic growth for fiscal 2023-24. FM Nirmala Sitharaman tabled the Economic Survey in Parliament. As per the Economic Survey, India's economy to grow 6.5% in 2023-24, compared to 7% this fiscal and 8.7% in 2021-22 .
Markets eke out modest gains ahead of Budget, Fed's rate decision
Equity benchmarks ended with marginal gains today as investors kept their powder dry ahead of the Union Budget presentation and the US Fed's interest rate decision. Fag-end buying helped the 30-share BSE benchmark Sensex settle with a gain of 49.49 points or 0.08 per cent at 59,549.90. During the day, it hit a high of 59,787.63 and a low of 59,104.59. The broader NSE Nifty inched up 13.20 points or 0.07 per cent to close at 17,662.15.
Sanjeev Krishan, Chairperson, PwC India
“Economic Survey 2023 presents an optimistic growth projection of 6.5% as a baseline banking on the lagged effect of reforms undertaken over the last 6 years paying off as the drags on the economy from the pandemic, high commodity prices and risks of a global slowdown wear off. The strong balance sheet of banks and corporates are rightly assumed to give a private capex push in addition to the government capex push if the assumptions on the external and demand front are realised."
Biz2credit and Biz2X's Rohit Arora on eco survey
Rohit Arora, CEO and Co-founder, Biz2credit and Biz2X, said, “The Economic survey has estimated India's growth to be 6.5% in 2023-24, compared to 7% in the current fiscal and 8.7% in 2021-22. Gross domestic product (GDP) in nominal terms is projected to be 11% in the next fiscal.
The good news is that the post COVID economic revival in India has been robust and momentum is building. Much of this growth can be attributed to surge in private consumption, higher capex, firming up of corporate balance sheet, credit growth to small businesses (30.5% rise in between January and November, 2022) and return of migrant workers to cities and towns.
The focus on capex-led growth will enable India to keep the growth-interest rate differential positive. A positive growth-interest rate differential will help keep the debt levels sustainable. I also feel that the supply-side reforms that the Government will announce soon will bring long term positive benefits to the economy. However, as the survey has rightly indicated, the economy needs to remain cautious in terms of the Consumer Price Index inflation."
Simpler tax, rules for start-up shifting base to India
The Economic Survey has called for simpler tax rules and processes to help Indian-owned start-ups in "reverse flipping" or shifting their base back to India.
Demat accounts rise 39% in Nov 2022
The number of demat accounts rose to 10.6 crore in November 2022, a sharp surge of 39 per cent on yearly basis, Economic Survey 2022-23 said.
Health expenditure at 2.1% of GDP in FY23: Economic Survey
The central and state governments’ budgeted expenditure on healthcare touched 2.1 % of GDP in FY23 and 2.2% in FY22, against 1.6% in FY21, as per the Economic Survey 2022-23.
Subdued global demand in 2023 could impact exports
Subdued demand in 2023 could suppress global trade and impact several countries, including India, according to the Economic Survey 2022-23 tabled in Parliament on Tuesday.
Vinod Nair on Economic survey
Vinod Nair, Head of Research at Geojit Financial Services, said, “Economic survey is optimistic that India will continue to grow at a healthy rate in the medium term, led by consumption and capital expenditure. And the growth can expand to as high as 7 to 8 percent in the future. The fundamentals of the Indian economy are solid, however, in the short to medium-term, widening current account deficit for an extended period is a concern that could have an implication on growth and depreciation of the INR. For the budget, it is going to be a challenge in FY24 to plan out the expenditures due to a short-term slowdown in the economy, high core inflation, and fiscal deficit."
By and large, inflation is likely to be "well behaved" in FY24 barring headwinds, CEA Nageswaran said today.
On GDP growth rate
The CEA says the government survey forecasts a GDP growth rate of 6.5 percent in a range of 6-6.8 percent for FY24. The range is deliberately asymmetric given the global uncertainties.
On digital infra
Nageswaran said, It is my belief that India's improved balance sheet and digital infrastructure will add 60-100 basis points to India's GDP growth. The pandemic recovery stage is over for India."
'Govt become more transparent about it's numbers'
The CEA said that it's not just that quality of government expenditure has improved in recent years, but the government has also become more transparent about it's numbers.
Indian economy to grow faster once…
Indian economy to grow faster once global shocks of pandemic, Russia-Ukraine war fade, says Nageswaran.
India will perform better in this decade
Reforms of the last eight years mean the country will perform better in this decade, said Nageswaran.
On banking, non-banking, and corporate sectors
Sectors such as banking, non-banking, and corporate have good balance sheets after a long time.
'Recovery of economy is complete'
Recovery of economy is complete; non-banking and corporate sectors now have healthy balance sheets, hence, we don't have to speak of pandemic recovery anymore, we have to look ahead to the next phase, Nageswaran said.
CEA on IMF's GDP growth forecast
CEA Nageswaran said that the IMF has retained its GDP growth forecast for India for the current and next financial years. Their forecasts show an acceleration in India's GDP growth rate.
Economic Survey Highlights thrust on rural development
The survey notes that 65% (2021 data) of the country’s population lives in rural areas and 47% of the population is dependent on agriculture for livelihood
Capital expenditure target of ₹7.5 lakh cr for FY23 to be met: Survey
The country's economy is expected to grow by 8-8.5% in the fiscal beginning 1 April and is well placed to meet the future challenges on the back of widespread vaccine coverage, supply-side reforms and easing of regulations, said the pre-Budget Economic Survey on Monday. The Economic Survey 2021-22 was tabled by Union Finance Minister Nirmala Sitharaman in Parliament ahead of the annual budget on Tuesday. Read more here
Economic Survey: CAD may continue to widen on high global commodity prices
The government's annual Economic Survey report on Tuesday said that India's current account deficit (CAD) may continue to widen as global commodity prices remain elevated. However, the country's economy remains strong, the it said. Read more here
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. Read more here
India vows fiscal prudence as global risks weigh on growth
India’s government said it will focus on rebuilding fiscal space lost during the pandemic to counter new risks from a challenging global environment, which has already begun weighing on domestic demand.
Strong demand and high expenditure to drive growth
Domestic demand, capital expenditure pick-up to aid growth. Rupee may come under pressure if CAD widens further, Economic Survey 2023
'Borrowing cost to be higher for longer'
Borrowing cost may remain 'higher for longer', entrenched inflation may prolong tightening cycle
FY24 real GDP growth and base-line growth
FY24 real GDP growth seen at 6-6.8% and FY24 base-line real GDP growth seen at 6.5%.
Employee Provident Fund registration rose
Private consumption, capital formation led economic growth in current fiscal has helped generate employment; urban employment rate declined, while Employee Provident Fund registration rose
GST payments on the rise
After a dip in FY21, GST paid by small businesses has been rising and now crossed pre-pandemic levels reflecting the effectiveness of targeted government intervention
Capex grew by 63.4%
Central govt capex grew 63.4% in April-November of current fiscal
Indian economy withstood Ukraine-Russia war fallout
India's economic resilience has helped it withstand the challenge of mitigating external imbalances caused by the Russia-Ukraine conflict without losing growth momentum
Housing prices rising
Prices firming up after release of pent-up demand, decline in inventories
Bank credit growth likely to be brisk in FY24
Benign inflation and moderate credit cost to impact bank credit
Credit growth to small businesses remarkably high at over 30.5% in January-November, 2022
Survey highlights schemes that drove growth
Credit disbursal, capital investment cycle, expansion of public digital platform and schemes like PLI, National Logitics Policy and PM Gati Shakti to drive economic growth
Global slowdown impacted exports
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.
Inflation did not 'creep too far above
Inflation tolerance range compared to several advanced nation
CAD may continue to widen
Global commodity prices remain elevated, economic growth momentum stays strong.
If CAD widens further, rupee may come under depreciation pressure
Overall external situation to remain manageable
India has sufficient forex reserves to finance CAD and intervene in forex market to manage rupee volatility.
Current Account Deficit to continue to widen
Borrowing cost to remain high
Borrowing cost may remain 'higher for longer', entrenched inflation may prolong tightening cycle
Inflation projection: 6.8% this fiscal
RBI projection of 6.8% inflation this fiscal outside the upper target limit, not high enough to deter private consumption, also not too low to weaken inducement to invest
Highlight of the Sconomic Survey 2023
As per the Economy Survey, Growth driven by private consumption, higher capex, strengthening corporate balance sheet, credit growth to small businesses and return of migrant workers to cities.
Highlights of Economic Survey 2022-23 tabled in Parliament
India's economy to grow 6.5% in 2023-24, compared to 7% this fiscal and 8.7% in 2021-22 .
India to remain the fastest growing major economy in the world.
GDP in nominal terms to be 11% in next fiscal.
Real GDP growth to be in the range of 6-6.8% next fiscal depending on global economic, political developments.
FM Nirmala Sitharaman tables Survey in parliament, GDP growth seen at 6-6.8%
The Economic Survey for 2022-23 has projected a GDP growth rate in the range of 6 to 6.8 per cent for the next fiscal 2023-24 (FY24), as against a projected growth of 7 per cent in the current financial year, according to the Economic Survey tabled in the parliament on Tuesday.
All need to know about the Economic Survey
The survey helps in giving a better understanding of the Union Budget by comprehending the country's priority for the next financial year and what sectors would need more emphasis.
The first economic survey came into existence in 1950-51 when it used to be a part of the budget documents. In the 1960s, it was separated from the Budget documents and presented the day prior to the Union Budget, according to the news agency ANI.
The Economic Survey document will give insights into the state of the economy and various indicators in the current financial year 2022-23 and the outlook for the following year.
What is Economic Survey?
Economic Survey is a document, which is tabled in both Houses of the Parliament which reviews the developments that took place in the Indian economy over the past financial year. The Economic Survey document comprises Volume I, Volume II and the statistical appendix. This comes a day before the finance minister tables the Union Budget in the Parliament. It was de-linked from the Budget in 1964 and unveiled in advance in order to provide a context of the latter. The Economic Survey is prepared by the Economics Division of the Department of Economic Affairs of the Finance Ministry under the overall guidance of the Chief Economic Adviser (CEA).
FM to table the Economic Survey shortly
The Budget Session of Parliament commenced at 11 am today. After the President's address, the economic survey will be tabled with projections for economic growth for fiscal 2022/23. Finance Minister will table the Economic Survey shortly.
About 3 lakh women farmers benefited from PM-KISAN: Prez Murmu
President Droupadi Murmu on Tuesday said about 3 lakh women farmers have been benefitted from PM-KISAN scheme under which ₹54,000 crore has been transferred to them so far.
The Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme was launched in February 2019 but is being implemented with effect from December 2018. Under the scheme, eligible farmers are provided with a financial benefit of ₹6,000 per year in three equal instalments of ₹2,000 each every four months. The fund is directly transferred to bank accounts of the beneficiaries.
In her first address to the joint sitting of Parliament as the Budget session began, Murmu said the government's priority is 11 crore small farmers who were for decades deprived of the benefits. These farmers are now being empowered. "Under PM-KISAN, more than ₹2.25 lakh crore has been transferred. Important thing is that about 3 lakh are women farmers," Murmu said.
No mention of issues of unemployment, inflation in President's address: BRS MP
We heard the President's address today, but there was no mention of issues of unemployment and inflation. I suggest to the President to advise the PM to bring an act called the 'Adani Act' as there is only croony capitalism now: BRS MP K Keshava Rao
India is said to peg growth next year at 6.5% amid global risks
India’s economy will likely slow for a second straight year due to tightening financial conditions and supply chains disruptions from a prolonged war in Europe, officials familiar with the matter told Bloomberg.
Gross domestic product is expected to grow 6.5% in the fiscal year starting April, compared with the 7% expansion estimated for the current year, the officials said, asking not to be identified before a formal announcement. That reading is higher than the International Monetary Fund’s projection for 6.1% growth — which will still make it the quickest pace among major economies.
'Budget to focus on economy and not elections: MoS Finance
Ahead of the Budget session, Union minister of state for finance Pankaj Chaudhary on Tuesday said "elections keep coming," the Union Budget for 2023-24 will focus on improving the economic conditions of the people, not the polls. "As far as budget is concerned in view of elections, elections keep coming and going, but how to improve the economic condition of the people of the country, Hon'ble Modi ji's attention is always there and it will be seen in this budget also," Chaudhary said. Chaudhary said Union finance minister Nirmala Sitharaman will present the Economic Survey later today
India trying to find collective solutions to global challenges together with G20 member countries
President Droupadi Murmu said that the country is trying to find collective solutions to global challenges together with G20 member countries
President's address concludes
President Droupadi Murmu concluded her address in the Parliament. Vice President Jagdeep Dhankhar now reads out select portion from her speech in English. Finance Minister Nirmala Sitharaman will table the Economic Survey 2023 shortly.
India enhancing new identity ‘pharmacy of the world’
Today, on one hand, India is taking its ancient knowledge of Yoga and Ayurveda to the world. On the other hand, it is enhancing its new identity as 'pharmacy of the world': President Droupadi Murmu to the joint sitting of Parliament, as Budget Session commences
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