1、EconomicSurvey 2023-24Government of IndiaMinistry of FinanceDepartment of Economic AffairsEconomic DivisionNorth BlockNew Delhi-110001July,2024CONTENTS vii Preface xv Acknowledgement xvii Abbreviations xxxiv List of Tables xxxv List of Charts xliv List of BoxesChapter No.Page No.Name of the Chapter

2、1 STATE OF THE ECONOMY:STEADY AS SHE GOES 2 Global Economic Scenario 9 A Resilient Domestic Economy 16 Macroeconomic Stability Safeguards Growth 31 Inclusive Growth 34 Outlook 2 MONETARY MANAGEMENT AND FINANCIAL INTERMEDIATION:STABILITY IS THE WATCHWORD 38 Introduction 39 Monetary Developments 42 Fi

3、nancial Intermediation 43 Performance of the Banking Sector and Credit Availability 63 Trends in Indian Capital Markets 73 Developments in the Insurance Sector 77 Developments in the Pension Sector 82 Assessment and Outlook 3 PRICES AND INFLATION:UNDER CONTROL 85 Introduction87DomesticRetailInflatio

4、n89CoreInflationDynamicsinthePost-pandemicWorld93FoodInflation97InterstateVariationsinRetailInflation98OutlookandWayForward 101 Annexure 1 4 EXTERNAL SECTOR:STABILITY AMID PLENTY 104 Introduction 105 Changing Global Trade Dynamics 107 Indias Trade:Resilience Amidst Global Turmoil 133 Favourable Curr

5、ent Account Balance 137 Capital Account Balance 150 International Investment Position 151 Stable External Debt Position 152 Outlook and Challenges 5 MEDIUM TERM OUTLOOK:A GROWTH VISION FOR NEW INDIA 155 Setting the Context 158 Key Areas of Policy Focus in the Short to Medium Term 165 Growth Strategy

6、 for Amrit Kaal:Strong,Sustainable and Inclusive 176 Outlook in the Medium Term 6 CLIMATE CHANGE AND ENERGY TRANSITION:DEALING WITH TRADE-OFFS 179 Introduction 183 Present Status of Indias Climate Action 184 Adaptation is Critical for India 187 Low Carbon Development and Energy Composition 200 Putti

7、ng in Place a Market Framework to Price Carbon:Indian Carbon Market 203 International Commitments on Climate Finance:The Developments 205 Indias International Initiatives to Address Climate Change Issues 207 Conclusion 7 SOCIAL SECTOR:BENEFITS THAT EMPOWER 209 Introduction211DovetailingGrowthwithEmp

8、oweringWelfare:AParadigmShift247SocialandEconomicEmpowermentofWomen 254 Rural Economy:Driving the Growth Engine 267 Towards Sustainable Development 269ConclusionandWayForward 8 EMPLOYMENT AND SKILL DEVELOPMENT:TOWARDS QUALITY 271 Introduction 272 Current Employment Scenario 276 Youth and female empl

9、oyment 290 The Evolving Landscape of Jobs in India 297 Requirement of Job Creation until 2036 308 Developments and Progress in Skilling317ConclusionandWayForward 9 AGRICULTURE AND FOOD MANAGEMENT:PLENTY OF UPSIDE LEFT IF WE GET IT RIGHT 319 Introduction322 AgricultureProduction:PerformanceandPromoti

10、ngCropDiversification337 AlliedSectors:AnimalHusbandry,DairyingandFisheriesaresignificantgrowth drivers 341 Food processing sector(FPI):Processing Potential 342 Food Management:Social net for food security 344 Conclusion 10 INDUSTRY:SMALL AND MEDIUM MATTERS 347 Introduction 350 Performance of Key Se

11、ctors and Related Issues364Cross-cuttingThemes 373 Conclusion and Outlook 11 SERVICES:FUELLING GROWTH OPPORTUNITIES 375 Introduction 376 Overview Of The Services Sector Performance 381 Financing Sources for Services Sector Activity382MajorServices:Sector-wisePerformance 401 Challenges and Opportunit

12、ies402ConclusionandWayForward 12 INFRASTRUCTURE:LIFTING POTENTIAL GROWTH 405 Introduction406Infrastructurefinancing:thepublicexpenditurepush 410 Developments across infrastructure sectors 440 Challenges and Opportunities 442 Facilitation and addressing the bottlenecks 445 Conclusions and Outlook 13

13、CLIMATE CHANGE AND INDIA:WHY WE MUST LOOK AT THE PROBLEM THROUGH OUR LENS 448 Introduction449WhyistheCurrentApproachFlawed?460 Adopting the Dominant Climate Narrative has Negative Implications for theDevelopingWorld468TheIndianWay:ASustainableLifestyle 475 ConclusionviiPreface:Steering the country t

14、hrough compacts and consensusThe economy continues to expandIn April,we commenced a new financial year.In May,we learnt that the Indian economy is estimated to have grown 8.2%in real terms in FY24.In June,a new government took office.The National Democratic Alliance government led by Prime Minister

15、Narendra Modi has returned to power with a historic mandate for a third term.His unprecedented third popular mandate signals political and policy continuity.The Indian economy is on a strong wicket and stable footing,demonstrating resilience in the face of geopolitical challenges.The Indian economy

16、has consolidated its post-Covid recovery with policymakers fiscal and monetary ensuring economic and financial stability.Nonetheless,change is the only constant for a country with high growth aspirations.For the recovery to be sustained,there has to be heavy lifting on the domestic front because the

17、 environment has become extraordinarily difficult to reach agreements on key global issues such as trade,investment and climate.High economic growth in FY24 came on the heels of growth rates of 9.7%and 7.0%,respectively,in the previous two financial years.The headline inflation rate is largely under

18、 control,although the inflation rate of some specific food items is elevated.The trade deficit was lower in FY24 than in FY23,and the current account deficit for the year is around 0.7%of GDP.In fact,the current account registered a surplus in the last quarter of the financial year.Foreign exchange

19、reserves are ample.Public investment has sustained capital formation in the last several years even as the private sector shed its balance sheet blues and began investing in FY22.Now,it has to receive the baton from the public sector and sustain the investment momentum in the economy.The signs are e

20、ncouraging.National income data show that non-financial private-sector capital formation,measured in current prices,expanded vigorously in FY22 and FY23 after a decline in FY21.However,investment in machinery and equipment declined for two consecutive years,FY20 and FY21,before rebounding strongly.E

21、arly corporate sector data for FY24 suggest that capital formation in the private sector continued to expand but at a slower rate.Sustaining overseas investor interest will require effortForeign Direct Investment,the subject of much analysis,has held up.RBI data on Indias Balance of Payments shows u

22、s that the investment interest of external investors,measured in terms of dollar inflows of new capital,was USD45.8 billion in FY24 compared to USD47.6 billion in FY23.This slight decline is in line with global trends.Reinvestment of earnings remained the same.Repatriation of investment was USD29.3

23、billion in FY23 and USD44.5 billion in FY24.Many private equity investors took advantage of buoyant equity markets in India and exited profitably.It is a sign of a healthy market environment that offers profitable exits to investors,which will bring newer investments in the years to come.That said,t

24、he environment for foreign direct investment to grow in the coming years is not highly favourable for many reasons.Interest rates in developed countries are much higher than they were during and before Covid years.This not only means a higher cost of funding but also a higher opportunity cost to inv

25、est abroad.Second,emerging economies have to compete with active industrial policies in developed economies involving considerable subsidies that encourage domestic investment.viiiThird,notwithstanding the impressive strides made in the last decade,uncertainties and interpretationsrelatedtotransferp

26、ricing,taxes,importdutiesandnon-taxpoliciesremaintobe addressed.Lastly,geopolitical uncertainties,which are on the rise,will likely exert a bigger influenceoncapitalflows,notwithstandingotherreasonsforpreferringtoinvestinIndia.Shocks and not structural forces have influenced employmentOn employment

27、generation,the Periodic Labour Force Survey provides quarterly data on urban employment indicators and annually for the entire country,including rural India.A surge in agriculture employment is partly explained by reverse migration and the entry of women into the labour force in rural India.The Annu

28、al Survey of Industries has data on workers in nearly 2.0 lakh Indian factories.The total number of factory jobs grew annually by 3.6%between2013-14and2021-22.Somewhatmoresatisfyingly,theygrewfasterat4.0%infactories employing more than a hundred workers than in smaller factories(those with less than

29、 a hundred workers).The annual growth rate was 1.2%in the latter set of factories.In absolute numbers,employment in Indian factories has grown from 1.04 crore to 1.36 crore in this period.India does not yet have a corresponding Annual Survey of Services.The lack of availability of timely data on the

30、 absolute number of(formal and informal)jobs created even at annual intervals,let alone at higher frequencies,in various sectors agriculture,industry including manufacturing and services precludes an objective analysis of the labour market situation in the country.The Annual Survey of Unincorporated

31、 Enterprises for 2022-23,when compared withtheresultsoftheNSS73rdroundoftheKeyIndicatorsofUnincorporatedNon-AgriculturalEnterprises(Excluding Construction)in India shows that overall employment in these enterprisesfellfrom11.1crorein2015-16to10.96crores.Therewasareductionof54lakhworkers in manufactu

32、ring but the expansion of the workforce in trade and services gained in jobs limited the overall reduction in the number of workers in unincorporated enterprises to around 16.45 lakhs between these two periods.This comparison masks a big jump in manufacturing jobsthatseemstohaveoccurredbetween2021-2

33、2(April2021toMarch2022)and2022-23(October 2022 to September 2023).Indiasufferedtwobigeconomicshocksinquicksuccession.Baddebtsinthebankingsystemandhighcorporateindebtednesswereone.Ittookthefirsttermofthepresentgovernmentand more to bring it under control.The Covid pandemic was the second shock and qu

34、ickly followedthefirstone.So,itisdifficulttoconcludethattheIndianeconomysabilitytocreateemployment is structurally impaired.Nonetheless,going forward,the task is cut out.Between the last Economic survey published in January 2023 and this one,big changes are afoot in the geopolitical environment.The

35、global backdrop for Indias march towards Viksit Bharatin2047couldnotbemoredifferentfromwhatitwasduringtheriseofChinabetween1980 and 2015.Then,globalisation was at the cusp of its long expansion.Geopolitics was largely calmwiththeendoftheColdWar,andWesternpowerswelcomedandevenencouragedtherise of Chi

36、na and its integration into the world economy.Concerns over climate change and global warming were not so pervasive or grave then as they are now.Fourth,the advent of ArtificialIntelligencecastsahugepallofuncertaintyastoitsimpactonworkersacrossallskilllevels low,semi and high.These will create barri

37、ers and hurdles to sustained high growth rates for India in the coming years and decades.Overcoming these requires a grand alliance of union and state governments and the private sector.ixEmployment generation is the real bottom line for the private sector It is worth reiterating that job creation h

38、appens mainly in the private sector.Second,many(notall)oftheissuesthatinfluenceeconomicgrowth,jobcreationandproductivityandtheactions to be taken therein are in the domain of state governments.So,in other words,India needs a tripartite compact,more than ever before,to deliver on the higher and risin

39、g aspirations of Indians and complete the journey to Viksit Bharat by 2047.Inmorethanonerespect,theactionlieswiththeprivatesector.Intermsoffinancialperformance,the corporate sector has never had it so good.Results of a sample of over 33,000 companiesshowthat,inthethreeyearsbetweenFY20andFY23,theprof

40、itbeforetaxesofthe Indian corporate sector nearly quadrupled.Further,newspaper headlines told us that the corporateprofits-to-GDPratiorosetoa15-yearhighinFY24.BusinessLine reported,“The corporateprofitfortheNifty-500universewasup30percentlastfiscalto14.11-lakhcroreagainst10.88lakhcroreinFY23.Thenomi

41、nalGDPgrew9.6percenty-o-yto295-lakhcrore(269-lakhcrore)1”.Hiring and compensation growth hardly kept up with it.But,it is in the interest of the companies to step up hiring and worker compensation.TheUniongovernmentcuttaxesinSeptember2019tofacilitatecapitalformation.Hasthecorporatesectorresponded?Be

42、tweenFY19andFY23,thecumulativegrowthinprivatesectornon-financialGrossFixedCapitalFormation(GFCF)is52%incurrentprices.Duringthesameperiod,the cumulative growth in general government(which includes states)is 64%.The gap does not appear to be too wide.However,whenwebreakitdown,adifferentpictureemerges.

43、PrivatesectorGFCFinmachinery and equipment and intellectual property products has grown cumulatively by only 35%in the four years to FY23.Meanwhile,its GFCF in Dwellings,other buildings and structures has increased by 105%.This is not a healthy mix.Second,the slow pace of investment in M&E and IP Pr

44、oducts will delay Indias quest to raise the manufacturing share of GDP,delay the improvement in Indias manufacturing competitiveness,and create only a smaller number of higher-qualityformaljobsthanotherwise.Nonetheless,there is a silver lining in the data.In the two years since FY21,GFCF by the priv

45、ate sector has grown faster.General government GFCF rose a cumulative 42%between FY21andFY23.Non-FinancialPrivateSectorsoverallGFCFincreasedby51%;investmentin Machinery and Equipment and Intellectual Property Products increased by 38%.So,the growthinthesetwocriticalsub-componentsofPrivateSectorGFCFi

46、ssimilartothatoftheoverall GFCF by the General Government.This is a statistic that bears watching.They should continue to invest.To do so,they need demand visibility.That comes from employment and income growth.In a recent article,2 the Economist cites independent research that predicted a slow demi

47、se ofIndiasservicesexportsoverthenextdecade.Whiletheboomintelecommunicationsandthe rise of the internet facilitated business process outsourcing,the next wave of technological evolution might bring the curtains down on it.In this milieu,the corporate sector has a responsibility,as much to itself as

48、it is to society,to think harder about ways AI will augment labourratherthandisplaceworkers.HiringintheITsectorhasslowedsignificantlyinthelasttwoyears.Wedonothaveafullpictureofoverallcorporatehiringinthecountryonaregular1 Corporate profit to GDP hits 15 year high as input cost moderates,BusinessLine

49、,11th June 2024(https:/ WillServicesmaketheworldrich?,TheEconomist,24thJune2024(https:/ Staff Discussion Note of the International Monetary Fund published in June 20243 notesthatGenerativeArtificialIntelligenceraisedprofoundconcernsaboutmassivelabourdisruptionsandinequality.TheIMFSDNgoesontorecommen

50、dwell-designedexcesscorporateprofittaxesandhighpersonalincometaxesoncapitalthroughbetterenforcementofautomaticinformation exchange between countries and enhanced taxation of capital gains.However,employmentisaboutdignity,self-worth,self-esteem,self-respect,andstandinginthefamilyandcommunity,notjusta

51、bouttheincomeitbrings.Thatiswhyitisintheenlightenedself-interestoftheIndiancorporatesector,swimminginexcessprofits,totakeitsresponsibilitytocreatejobsseriously.Ofcourse,itmustfindpeoplewiththerightattitudeandskills.Thatrequiresanothertripartitecompact-betweenthegovernment,theprivatesectorandacademia

52、.This compact is to reboot the mission to skill and equip Indians to catch up with and get ahead of technological evolution.To succeed in the mission,governments must unshackle the industry and academic institutions to play their respective roles in that mammoth task.For example,despite several amen

53、dments over the years,the Apprenticeship Act remains a workinprogress,atbest,inencouraginglarge-scaleapprenticeshipsinthecountry.TheNewEducation Policy 2020 proposes freeing Indias higher education from regulatory oversight to market oversight.A corporate sector that helps shape the design of higher

54、 education with inputstocurriculum,evaluationstandards,andfacultywillpavethewayforahigh-qualityhigher education that market competition brings,replacing regulatory oversight.If anything,another article4 in The Economist that hails the arrival of China as a superpower in science shouldbesufficientins

55、pirationforthecorporatesectorandacademiatogettheiracttogetheronscientificresearchanddevelopment.The real corporate social responsibilityThe role of the corporate sector has never been greater than it is now.Two other areas of corporate responsibility deserve mention here.The pandemic saw the emergen

56、ce of the Indian retail investor as the bulwark of market stability.The culture of investing for the long term has to be nurtured and sustained.Market practices that take their cues from the thinly disguised leveragedbetsmasqueradingasfinancialinnovationsinthedevelopedworldhavenoplaceinadevelopingco

57、untrywithalowper-capitaincome.Second,justascorporateprofitsarebooming,thenetinterestmarginofIndianbankshasrisentoamulti-yearhigh.Itisagoodthing.Profitablebankslendmore.Tosustainthegoodtimes,itisimportantnottoforgetthelessonsofthelastfinancialcycledownturn.Thebankingindustrymustaimtolengthenthegapbet

58、weentwoNPAcycles.Itshouldalsoresistthetemptationtopursueshort-termprofitsattheexpense of the customer.Product misselling is too rampant to be dismissed as an aberration of a few overenthusiastic sales personnel.The same can be said of the insurance industry as well.Prompt and reasonable settlement o

59、f insurance claims and a lower rejection rate are necessary to increase insurance penetration.Acknowledgement of misselling and misrepresentation and compensating for consequential losses is a good business practice enjoined upon stockbroking,fundmanagement,bankingandinsurancefirms.Corporatesbenefit

60、fromthehigherdemandgeneratedbyemploymentandincomegrowth.Thefinancialsectorbenefitsfromchannellinghouseholdsavingsforinvestmentpurposes.3 Broadening the gains from Generative AI:the role of fiscal policies,Staff Discussion Note,International Monetary Fund,June 2024(https:/ China has become a scientif

61、ic superpower,The Economist,12th June 2024(https:/ linkages must grow stronger and last longer to meet the infrastructure and energy transitioninvestmentsinthecomingdecades.Short-termismcanweakentheselinkages.ForIndiasworking-agepopulationtobegainfullyemployed,theyneedskillsandgoodhealth.Social medi

62、a,screen time,sedentary habits,and unhealthy food are a lethal mix that can undermine public health and productivity and diminish Indias economic potential.The private sectors contribution to this toxic mix of habits is substantial,and that is myopic.The emerging food consumption habits of Indians a

63、re not only unhealthy but also environmentally unsustainable.Indias traditional lifestyle,food and recipes have shown how to live healthily and in harmony with nature and the environment for centuries.It makes commercial sense for Indian businesses to learn about and embrace them,for they have a glo

64、bal market waiting to be led rather than tapped.Governments,on their partPolicymakers elected or appointed have to rise to the challenge as well.There has to be conversation,cooperation,collaboration,and coordination across ministries,states,and between the union and states.Few people outside the go

65、vernment living or dead can understand the complexity of governing and transforming a nation of Indias(population)size,(geographical)spread and social and cultural diversity within a democratic framework.The political class,with its ears to the ground and the civil service,with its exposure to distr

66、icts,states and central Ministries,have a better shot at(at least)a partial understanding of this complexity.They intuitively know there is no place for exclusive approaches and binary choices,which are the staple of sterile discussions and discourses.Examples are urban vs.rural,growth vs.equity or

67、development,and manufacturing vs.services.They intuitively know that India needs multiple development pathways.That is a good thing.But it is easier said than done.It has not been done before.Not on this scale.Not in the time frame and not amidst a turbulent global environment.Forging and sustaining

68、 consensus between governments,businesses and the social sectors are necessary to succeed in this endeavour.Agriculture can be a growth engine ifThe agriculture sector is one area ripe for and in need of such a pan-India dialogue.Agriculture and farmers matter for a nation.Most countries understand

69、that.India is no exception.India subsidises their water,electricity and fertilisers.The former two are provided virtuallyfree.Theirincomesarenottaxed.Thegovernmentoffersthemaminimumsupportprice(MSP)for23selectedcommodities.MonthlycashsupportisofferedtofarmersthroughthePM-KISANscheme.Indiangovernment

70、snationalandsub-nationalwriteofftheirloans.So,governments in India spend enough resources to look after the farmers well.Yet,a case can bemadethattheycanbeservedbetterwithsomere-orientationofexistingandnewpolicies.Apanoplyofpoliciesbynationalandsub-nationalgovernments-workingatcross-purposes with ea

71、ch other is hurting farmers interests,destroying soil fertility,depleting groundwater,polluting rivers and the environment with nitrous oxide emissions,starving the crops of nutrients and undermining peoples health with a diet rich in sugar and carbohydrates ratherthanfibreandprotein.Thepayoffwillbe

72、immenseifweuntietheknotsthatbedevilfarmsectorpolicies.Morethananythingelse,itwillrestorefaithintheself-confidenceandabilityofthestatetosteerthenationtoabetterfuture,apartfromdeliveringsocio-economicbenefits.Earlier development models featured economies migrating from farm beginnings to industrialisa

73、tion to value-added services in their development journey.Technologicaladvancements and geopolitics are challenging this conventional wisdom.Trade protectionism,xiiresource-hoarding,excesscapacityanddumping,onshoringproductionandtheadventofAIare narrowing the scope for countries to squeeze out growt

74、h from manufacturing and services.Thatisforcingustoturnconventionalwisdomonitshead.Canthefarmsectorbethesaviour?A return to roots,as it were,in terms of farming practices and policymaking,can generate higher value addition from agriculture,boost farmers income,create opportunities for food processin

75、g and exports and make the farm sector both fashionable and productive for Indias urban youth.When resolved,the problem areas mentioned above that the current policyconfigurationhascreatedovertheyearscanbecomesourcesofIndiasstrengthandamodelfortherestoftheworld-developinganddeveloped.Unleashing smal

76、l enterprisesAnother area where policy intentions have yet to manifest in desired outcomes is with respect tosmall,medium,andlargeenterprises.Earlier,severalproductswerereservedforsmall-scaleindustries.Thatwasphasedoutasitbenefittedneitherthesmall-scaleindustriesnortheoveralleconomy.Recentconcertede

77、ffortsatformalisingthemaremakingprogress.Progressisrelativelysloweronaccesstofinance.Buyersandcreditorsaresheddingoldmindsetsandpracticestooslowlyfortheseenterprisestofeeltheeffect.However,theseenterprisesneedmaximum relief from the compliance burdens they face.Laws,rules and regulations stretch the

78、irfinances,abilitiesandbandwidth,perhapsrobbingthemofthewilltogrow.Successful Energy transition is an orchestraOther priorities,such as energy transition and mobility,may pale compared to the complexity of getting the farm sector policies right.Still,they have one thing in common with it.They requir

79、e getting many things across several ministries and states aligned.The list is long.Energy transition and mobility issues require attention in the following areas:(a)resourcedependenceonhostilenations;(b)technological challenges such as intermittency of power generation,ensuring grid stability amids

80、t surges and drop in generation from renewable energy sources and battery storage(c)recognitionoftheopportunitycostoftyinguplandinaland-scarcecountry;(d)fiscalimplicationsthatinvolvebothadditionalexpendituresforsubsidisingrenewableenergygenerationandfore-mobilitysolutions,lossoftaxandfreightrevenuec

81、urrentlyaccruingfromthesaleandtransportationoffossilfuels;(e)impairmenttobankbalancesheetsfromtheso-calledstrandedassetsand(f)examination of the merits of alternative mobility solutions such as public transportation models and more.Emulating policy practices of other nations may be neither feasible

82、nor desirable,for solutionsmaynotemergefromapproachesandplacesthatcreatedtheproblemsinthefirstplace.Letting go is part of good governanceWhilecontemplatingthechallengesthatlieahead,oneshouldnotbedauntedbecausethesocialandeconomictransformationofdemocraticIndiaisaremarkablesuccessstory.Wehavecomealon

83、gway.TheeconomyhasgrownfromaroundUSD288billioninFY93toUSD3.6trillion in FY23.India has generated more growth per dollar of debt than other comparable nations.Abject poverty has all but been eliminated.Human development indicators have xiiiimproved,andmoreIndians,especiallywomen,aregettingeducated.Fo

84、rallitsflawsandwarts,the system has delivered accountability through the democratic process and public discourse,wheretheoccasionalandrarermaturecommentaryproveseffective.Weshouldnotlosesightof that.However,itwouldbeamissedopportunity-astherehavebeenmanyinthepast-notto strengthen a system to steer t

85、he country through a future that has become immeasurably uncertain.After nearly eight decades of relative peace at the global level,the world is moving towardsalargerandwiderconflictwithlonger-termeffects.TheIndianstatecanfreeupitscapacity and enhance its capability to focus on areas where it has to

86、 by letting go of its grip in areas where it does not have to.The Licensing,Inspection and Compliance requirements that all levels of the government continue to impose on businesses is an onerous burden.Relative to history,the burden has lightened.Relative to where it ought to be,it is still a lot h

87、eavier.The burden is felt more acutely by those least equipped to bear it small and medium enterprises.It holds them back,leashes their aspirations,and,in the process,holds the country back.On the face of it,it does not seem to matter because the economic growth rates are good,and there are visible

88、signs of progress.But,we will never know the counterfactual:“what it might have been”.Ishopanishad enjoins all of us to let go of(renounce)our possessions,be free and enjoy that freedom:Power is a prized possession of governments.They can let go of at least some of it and enjoy the lightness it crea

89、tes in both the governed and the governing.Finally,The tripartite compact that this country needs to become a developed nation amidst emerging unprecedented global challenges is for governments to trust and let go,for the private sectortoreciprocatethetrustwithlong-termthinkingandfairconductandforth

90、epublictotakeresponsibilityfortheirfinancesandtheirphysicalandmentalhealth.TheEconomicSurvey2023-24coversmanyoftheissuesdiscussedaboveinitsseveralchapters,apart from informing readers of government policies and their performance,their impacts,innovations,developments and success stories worth emulat

91、ing.As before,the staple content of the Survey is chapters that provide an assessment of the various sectors such as agriculture,industry,infrastructure and services.ForusintheEconomicsDivisionintheDepartmentofEconomicAffairs,puttingtheEconomic Survey together and getting it into your hands or elect

92、ronic devices is a labour of love.Recordingandsharingthecountrysprogressintheyearunderreviewandreflectingonwhat it must do and must not to achieve the progress it deserves is a learning experience for us.Indoingso,wemayhavemademistakes.Pleasedotellus.Wepromisetokeepgettingbetteratit.Ultimately,thati

93、sallwecanandshouldaskofourselves.V.Anantha NageswaranChief Economic AdvisorMinistry of FinanceGovernment of IndiaxvAcknowledgmentTheEconomicSurvey2023-24istheresultofateameffort.TheSurveyhasbenefittedfromthecomments and insights of the Honble Finance Minister Smt.Nirmala Sitharaman.The survey sincer

94、ely acknowledges the support from the Honble Minister of State for Finance Shri Pankaj Chaudhary,Finance Secretary Dr.T.V.Somanathan,Secretary DEA Shri Ajay Seth,Secretary DIPAM Shri Tuhin Kanta Pandey,Secretary DPE Shri Ali Raza Rizvi,Secretary Financial Services Shri Vivek Joshi and Revenue Secret

95、ary Shri Sanjay Malhotra.The contributors to the Survey from the Economic Division and other Divisions of DEA include:Chandni Raina,Antony Cyriac,Anuradha Guru,Anoopa S Nair,Kokila Jayaram,Syed Zubair Naqvi,Dharmendra Kumar,Seema Joshi,Harish Kumar Kallega,Deepika Srivastava,Amit Sheoran,Shreya Baja

96、j,Megha Arora,Deeksha Supyaal Bisht,Manoj Kumar Mishra,Ritika Bansal,Md.Aftab Alam,Pradyut Kumar Pyne,Esha Swaroop,Radhika Goyal,Harish Yadav,Rajesh Sharma,Mritunjay Kumar,Amit Kumar Kesarwani,Deepdyuti Sarkar,Ajay Ojha,K Chandra Shekar,Rohit Kumar Tiwari,Hema Rana,Aparajita Tripathi,Sonali Chowdhry

97、,BharadwajAdiraju,SurabhiSeth,MeeraUnnikrishnan,AkashPoojari,RoshanYadav,RohitTrivedi,Satyendra Kishore,S.Ramakrishnan,Vishal Gori,Kunal Bansal,Ritesh Kumar Gupta,DhritiArora,MunaSah,Brijpalandpersonalstaffoftheofficers.Apartfromtheabove,officialsofvariousministries,departmentsandorganisationsoftheG

98、overnment of India contributed in their respective sectors,with comments and inputs.They include:Rajiv Mishra,Solomon Arokiaraj,Baldeo Purushartha,Pravakar Sahoo,Ajay Kumar Sood,Alisha George,Gourav Masaldan,E Srinivas,Nitish Suri,Nilambhuj Sharan,Kamkhenthang Guite,M.G.Jayashree,Dhrijesh Kumar Tiwa

99、ri,Awadesh Kumar Chaudhary,Shefali Dhingra,R.Rajesh,Yogesh Suri,Kusum Mishra,Bijaya Kumar Behera,A.Srija,P K.Abdul Kareem,C.Vanlalramsanga,Renuka Mishra,Manik Chandra Pandit,Gayatri Nair Manoj Madholia,Surjith Karthikeyan,Vishnukanth PB,Kapil Patidar,Jaipal,Anushree Raha,ChitvanDhillon,LeenaKumar,Up

100、deshSharma,PrabhatKumarSingh,DharamPrakash,DalipKumar,Akhilesh Sharma,S.N.Mishra,Anshuman Kamila,Ishita Ganguli Tripathy,Lalsanglur,Rajasree Ray,Anshu Bharadwaj,Rajnath Ram,Rishika Choraria,Manisha Sensarma,Faiz Ahmed Kidwai,Franklin L.Khobung,A.Pratibha,Indu Butani,V.S.Sehrawat,Kushwant Kumar,Rajes

101、h Kumar,Sabri Bin Kasim,Shanta Sharma,Rahul Meena,Puneet Bhatia,Abhay Bakre,Dhiraj Kumar Srivastava,J.Rajesh Kumar,Ajay Mathur,Amit Prothi,Alpana Saha,Prince Dhawan,Ansy Mathew N.P.,A.R.Roy,Ashwini Kumar,Rajkumar,Pramod Kumar Arya,and Subhash Chand.Wealsoreceivedhelpfromseveralexperts,industrybodies

102、,publicinstitutionsandprivatesector entities including SEBI,RBI,IBBI,IFSCA,PFRDA,IRDAI,Tirthankar Patnaik,Sangeeta Gupta,Tanay Dalal,Vrunda Bansode,Bhuvana Anand,Shubho Roy,R.Subrahmanyam,Suchita Dutta,and Prasanna Tantri.Able administrative support was given by Manoj Sahay,Aparna Bhatia,Jasbir Sing

103、h,Susruta Samanta,Daleep Kumar,Sunil Kumar Gupta,Pankaj Kumar,Davendra Kumar,Navneet Pathak,RahulGoelandotherstaffmembersoftheDEA.xviHindi translation of the survey was done by Lt.Col.M.K.Singh,Dr.Puran Singh,Harish Singh Rawat,Rajneesh Kumar,Anupam Arya,Samta Rani,Babita Gunjiyal,Jintu Kumer Mandal

104、,Vinay Kumar,Kamlesh Dhamunaya,Archana singh,Maya Meena,Sheo Pujan Chaudhary,Neeraj Mishra,Gaurav Bhatia,Reena Kumari Meena,Surbhi and Shikha from Hindi Section,DEA and Jaiveer,Meenakshi Verma,Manish Bhatnagar,Manoj Kumar,Rajiv Kumar Singh,Diwakar Shukla,Raveesh Ranjan,Dharmendra Kumar from Central

105、Translation Bureau.Hindi version of the survey was typed by Anil Bajaj,Himanshu Sharma,Jiya Lal Maithani,Dinesh Dewan from Directorate of Printing,Minto Road.The cover page for the Survey was designed by Izzur Rahman,Deepak Aggarwal,Goutam Halder,Adit Agarwal and Mohammad Suhail from Signature Print

106、ers did page setting of the English and Hindi versions of the Survey.The Economic Survey owes deep gratitude to the families of all those involved in its preparation for their patience and support.V.Anantha NageswaranChief Economic AdviserMinistry of FinanceGovernment of IndiaxviiAbbreviationsAAGRAv

107、erage Annual Growth RateAAIAirport Authority of IndiaAAUsAssignedAmountUnitsAAYAntyodaya Anna YojanaABCAcademic Bank of CreditsABDMAyushman Bharat Digital MissionABHAAyushman Bharat Health AccountAB-PMJAYAyushman Bharat Pradhan Mantri Jan Arogya Yojana AB-RPYAatmanirbhar Bharat Rojgar Protsahan Yoja

108、naABRYAatmanirbhar Bharat Rojgar YojanaABSAutomatic Block SignalingACCsAir Cargo Complexes ADBAsian Development BankADPAspirational Districts ProgrammeAEsAdvanced Economies AFHCAdolescent Friendly Health ClinicAGEYAajeevika Grameen Express YojanaAHIDFAnimal Husbandry Infrastructure Development FundA

109、IArtificialIntelligenceAI ArtificialIntelligenceAI IPArtificialIntelligenceIntellectualPropertyAIBPAcceleratedIrrigationBenefitProgrammeAICTE All India Council for Technical Education AIFAlternative Investment Fund AIFAgriculture Infrastructure FundAIIMSAll India Institute of Medical SciencesAIRAWAT

110、AI Research Analytics and Knowledge Dissemination PlatformAISHEAll India Survey on Higher EducationAITIGAASEAN-IndiaTradeinGoodsAgreementAKRSPAga Khan Rural Support ProgrammeAMCsAsset Management Companies AMIAgricultural Marketing InfrastructureAMRITAffordableMedicinesandReliableImplantsforTreatment

111、AMRUTAtalMissionforRejuvenationandUrbanTransformationAPAARAutomated Permanent Academic Account RegistryAPIApplication Programming InterfaceAPIsActive Pharmaceutical IngredientsAPLMAgricultural Produce and Livestock MarketingAPMCsAgricultural Produce Marketing CommitteesAPMRAgricultural Produce Marke

112、ting RegulationxviiiAPYAtal Pension YojanaARCsAsset Reconstruction Companies ARG Automatic Rain GaugeARHCAffordableRentalHousingComplexesARIMAAutoregressive Integrated Moving AverageASBAApplication Supported by Blocked Account ASIAnnual Survey of IndustriesASTROSATSpace Astronomy ObservatoryATFAviat

113、ion Turbine FuelATPAutomatic Train ProtectionAuMAssets under ManagementAWCAnganwadi CentreAWSAutomaticWeatherStationBBSSLBhartiya Beej Sahakari Samiti LimitedBDIBaltic Dry Index BEBudget EstimateBFSIBanking,Financial Services and InsuranceBFTBare Foot TechnicianBHELBharat Heavy Electricals LimitedBI

114、MBuilding Information ModellingBISBank for International SettlementsBoPBalance of PaymentBPMBusiness Process Management BPOBusiness Process OutsourcingBROBorder Roads OrganizationBRSRBusiness Responsibility and Sustainability Report BSFBlack Soldier FliesBTSBase Transceiver StationsCACPCommission fo

115、r Agricultural Costs&Prices CADCurrentAccountDeficitCAGComptroller and Auditor General of IndiaCAGRCompound Annual Growth RateCapexCapital ExpenditureCBGCompressed Bio GasCBICCentral Board of Indirect Taxes and Customs CBMCoal Bed MethaneCBSECentral Board of Secondary EducationCCClearing Corporation

116、s CCSCarbon Capture and StorageCCTSCarbon Credit Trading Scheme CCUSCarbonCapture,Utilization,andStorageC-DACCentre for Development of Advanced ComputingxixCDMClean Development Mechanism CDRICoalition for Disaster Resilient InfrastructureCDsCertificateofDepositsCECPAComprehensive Economic Cooperatio

117、n and Partnership AgreementCEPAComprehensive Economic Partnership AgreementCERsCertifiedEmissionReductionsCET-ICommonEquityTier-ICFPIConsumer Food Price IndexCGAController General of AccountsCGSCredit Guarantee Scheme CGTMSECredit Guarantee Fund Trust for Micro and Small EnterprisesCHCCommunity Heal

118、th CentreCHCsCustom Hiring CentresCiCCurrency in Circulation CIIConfederation of Indian IndustryCILCoal India LimitedCIPCentral Issue PriceCIRPsCorporate Insolvency Resolution Processes CISCustomer Information Sheet ckmcircuit kilometreCMIECentre for Monitoring Indian EconomyCMMCoal Mine MethaneCNDC

119、onsumerNon-DurablesCNGCompressed Natural GasCO2Carbon DioxideCOPConference of the PartiesCoPsConference of Parties CORSIACarbonOffsettingandReductionSchemeforInternationalAviationCPIConsumer Price IndexCPI-CConsumerPriceIndex-CombinedCPsCommercial PaperCPSEsCentral Public Sector EnterprisesCPSUCentr

120、alPublicSectorUndertakingsCQGRCompounded Quarterly Growth Rate CRARCapitaltoRisk-WeightedAssetsRatioCRISILCredit Rating Information Services of India LimitedCROPICCollectionofReal-timeObservationsandPhotographsofCropsCRPCommunity Resource PersonCRRCash Reserve RatioCSIRCouncilofScientificandIndustri

121、alResearchCSLCochin Shipyard LimitedCSOCivil Society OrganisationxxCSOCentralStatisticalOfficeCSPsCloud Service ProvidersCSRCorporate Social ResponsibilityCSSCentral Sector SchemesCVCoefficientofVariationCWSCurrentWeeklyStatusCwSNChildren with Special NeedsDA&FWDepartmentofAgricultureandFarmersWelfa

122、reDAHDDepartment of Animal Husbandry and DairyingDAPDi-ammoniumPhosphateDAY-NRLMDeendayalAntyodayaYojana-NationalRuralLivelihoodMissionDAY-NULMDeendayalAntyodayaYojanaNationalUrbanLivelihoodsMissionDBFOTDesign,Build,Finance Operate and TransferDBIDiversion-BasedIrrigationDBTDirectBenefitTransferDDU-

123、GKYDeenDayalUpadhyayaGrameenKaushalyaYojanaDEHDistricts as Exports Hub DFCsDedicated Freight CorridorsDFIDigital Financial InclusionDFIDoubling Farmers Income ReportDGCADirectorate General of Civil AviationDGQIData Governance Quality IndexDIETsDistrict Institutes of Education and TrainingDIKSHADigit

124、al Infrastructure for Knowledge SharingDISCOMsDistribution CompaniesDISHADistrict Development Coordination and Monitoring CommitteesDoPDepartment of Posts DPIDigital Public InfrastructureDPIITDepartment for Promotion of Industry and Internal Trade DRIDisaster Resilient InfrastructureDRIPDam Rehabili

125、tation and Improvement ProjectDRTsDebt Recovery Tribunals DSTDual System of TrainingDTHDirect to HomeEAEUEurasianEconomicUnionECBExternal Commercial Borrowings ECBEuropean Central Bank ECCEEarly Childhood Care and EducationECTAEconomic Cooperation and Trade Agreement EFTAEuropean Free Trade Associat

126、ion EIElectronic InterlockingE-LoGSplatformEase of Logistics Services platformxxiEMCElectronics Manufacturing ClustersEMDEsEmerging Markets and Developing EconomiesEMEsEmerging Market EconomiesEMI PaymentEquated Monthly Installment PaymentEMI/EMCElectromagnetic interference/Electromagnetic compatibi

127、lityeNAMNational Agriculture Market e-NAMe-NationalAgricultureMarketEPFEmployee Provident Fund EPFOEmployees Provident Fund OrganisationePoSelectronic point of saleER&DEnterprise,Research,and Development ERUsEmissionReductionUnitsESGEnvironmental,Social,and GovernanceESSEnergy Storage SystemsETCAEco

128、nomic and Technical Cooperation Agreement ETFsExchange Traded FundsEUEuropeanUnionEU-ETSEuropeanUnionEmissionTradingSchemeEVsElectric Vehicles EXIMExport-ImportBankFADAFederation of Automobile Dealers Associations FAOFood and Agriculture OrganisationFATFFinancial Action Task Force FCIFood Corporatio

129、n of IndiaFCRAForward Contracts Regulation ActFDIForeign Direct InvestmentFedFederal ReserveFERForeign Exchange ReserveFIDFFisheries Infrastructure Development FundFLFPRFemale Labour Force Participation RateFLNFoundational Literacy and NumeracyFMCForward Market CommissionFOMCFederal Open Market Comm

130、itteeFPIFood Processing IndustryFPIForeign Portfolio InvestmentFPOs Farmer Producers OrganisationFPSFair Price ShopFRBsForeign Reinsurance BranchesFSAFinancial Sector Assessment FSAPFinancial Sector Assessment Program FSDCFinancial Stability and Development Council FSRFinancial Stability Report xxii

131、FSSAFinancial System Stability Assessment ReportFSSIFinancial System Stress IndicatorFTAsFree Trade Agreements FTKsField Testing KitsFTTHFibre to the homeFY Financial YearFYFinancial YearGBSGender Budget StatementGBSGross Budgetary SupportGCAgross cropped areaGCCsGlobal Capability CentresGCPGreen Cr

132、edit ProgrammeGCTGatiShaktiMulti-ModalCargoTerminalGDPGross Domestic ProductGECGreen Energy CorridorGeMGovernmente-MarketplaceGERGross Enrolment RatioGERDGross Expenditure on Research and DevelopmentGFCGlobal Financial CrisisGFCFGross Fixed Capital Formation GHEGovernment Health ExpenditureGHGGreenh

133、ouse GasesGI CloudGovernment of India CloudGIFT CityGujaratInternationalFinanceTec-CityGIIGlobal Innovation IndexGNIGross National Income GNPAGrossNon-PerformingAssetsGoIGovernment of IndiaGovt.GovernmentGPGram PanchayatGPAIGlobalPartnershiponArtificialIntelligenceGPDPGram Panchayat Development Plan

134、GPsGram PanchayatsGSDPGross State Domestic ProductGSLVGeosynchronous Satellite Launch VehicleGSTGoods and Services Tax GSTGlobal Stocktake GTGross TonnageGTRGross Tax Revenue GVA Gross Value AddedGVAGross Value AddedGVCsGlobal Value ChainsxxiiiGWGigawattGWeqGigaWattEquivalentGWMRGroundwater Manageme

135、nt&RegulationGWsGigaWattsHALHindustan Aeronautics LimitedHAMHybrid Annuity ModelHCESHousehold Consumption Expenditure Survey HEIHigher Education InstitutionHFCHousing Finance Companies HHIHershman-HerfindahlIndexHKKPHar Khet Ko PaniHMLHarmonized ListHNIsHighNetWorthIndividualsHRHuman ResourcesIBAInd

136、ian Banks AssociationIBCInsolvency and Bankruptcy Code IBC Insolvency and Bankruptcy CodeIBP routeIndo Bangladesh Protocol routeICAOInternational Civil Aviation OrganizationICARIndian Council for Agriculture ResearchICDRIssue of Capital and Disclosure Requirements ICDSIntegrated Child Development Se

137、rvicesICRIERIndian Council for Research on International Economic RelationsICTInformation and Communications TechnologyIDRCLIndia Debt Resolution Company Ltd.IEBRInternal and Extra Budgetary ResourcesIETInternational Emissions TradingIFRSInternational Financial Reporting Standards IFSCInternational

138、Financial Services Centre IFSC GIFT CityInternationalFinancialServicesCentre,GujaratInternationalFinanceTec-CityIFSCAInternational Financial Services Centres AuthorityIHHLIndividual Household LatrineIIEIndian Institute of Entrepreneurship IIGIndia Investment GridIIPInternational Investment PositionI

139、IPIndex of Industrial ProductionIIPDFIndia Infrastructure Project Development FundIITIndian Institute of TechnologyIITMIndian Institute of Technology,MadrasILIMSIntegrated Land Information Management SystemIMCIndore Municipal CorporationIMECIndia-MiddleEastEuropeCorridorxxivIMEsInformal Micro Enterp

140、risesIMFInternational Monetary Fund India-WRISIndiaWaterResourceInformationSystemInfraInfrastructureIN-SPACeIndian National Space Promotion and Authorisation CentreINSTCInternationalNorth-SouthTransportCorridorInvITsInfrastructure Investment Trusts IoTInternet of ThingsIPOsInitialPublicOffersIRIndia

141、n Railways IRCTCIndian Railway Catering and Tourism Corporation LimitedIRDAIInsurance Regulatory and Development Authority of India IRFCIndian Railway Finance CorporationIRISInfrastructure for Resilient Island StatesISAInternational Solar AllianceISAMIntegrated Scheme for Agricultural MarketingISROI

142、ndian Space Research OrganisationITInformation Technology ITIIndustrial Training InstituteITMOsInternationally Transferred Mitigation OutcomesIVAIndependentVerificationAgencyIWAIInlandWaterwaysAuthorityofIndiaIWTInlandWaterTransportJAMJanDhan-Aadhaar-MobileJEEJoint Entrance ExaminationJJMJal Jeevan

143、MissionJLGJoint Liability Group JLGsJoint Liability GroupsJSSJan Shikshan SansthanKCCKisan Credit Card KLDKilo liters per dayKPKyoto ProtocolKrishi-DSSKrishi Decision Support SystemKWhKilowatt-hourL&TLarsen&ToubroLAMALog Analytics and Monitoring ApplicationLAMPLarge Area Multipurpose SocietiesLCAFLo

144、wer Carbon Aviation FuelsLCOELevelised Cost of Electricity LCRLiquidity Coverage Ratio LeadITLeadership Group for Industry TransitionLEADSLogisticsEaseAcrossDifferentStatesxxvLEDLight-EmittingDiodeLEDPLivelihood&Enterprise Development ProgrammesLFPRLabour Force Participation RateLH&DCLivestock Healt

145、h and Disease ControlLiFELifestyle for EnvironmentLMTLakh Metric TonsLPAILand Ports Authority of India LPGLiquifiedPetroleumGasLPGLiquifiedPetroleumGasLPILogistics Performance Index LTLakh tonnesLtd.LimitedLT-LEDSLong-TermLowEmissionDevelopmentStrategyLVM3LaunchVehicleMark-3M&AsMergers and Acquisiti

146、onsMAHSRMumbai-AhmedabadHighSpeedRailMAISMarket Access Initiatives Scheme MAMModerate Acute MalnutritionMANASMental Health and Normalcy Augmentation SystemMCAMinistryofCorporateAffairsMCAModel Concession AgreementMCXMulti Commodity ExchangeMEDPMicro Entrepreneurship Development ProgrammeMEITYMinistr

147、y of Electronics and Information Technology MFIsMicrofinanceInstitutionsMFsMutual FundsMGNREGAMahatma Gandhi National Rural Employment Guarantee ActMIFMicro Irrigation FundMISManagement Information SystemsMMLPMulti-ModalLogisticsParkMMTMillion Metric TonneMNEsMultinational EnterprisesMoAFWMinistryof

148、AgricultureandFarmersWelfareMoEMinistry of EducationMoHUAMinistryofHousing&UrbanAffairsMOOCMassive Open Online CourseMOPMuriate of Potash MoRTHMinistry of Road Transport&HighwaysMoSPIMinistry of Statistics and Program ImplementationMoUMemorandumofUnderstandingMOVCDNER Mission Organic Value Chain Dev

149、elopment for North Eastern Region MPCMonetary Policy Committee xxviMPCEMonthly Per Capita ExpenditureMPIMultidimensional Poverty IndexMRLsMajor Rail LinksMRLsMajor Rural LinksMROMaintenance,Repair and OverhaulMSCSMulti-StateCooperativesMSFMarginal Standing FacilityMSMEMicro,Small and Medium Enterpri

150、sesMSMEMinistry of Micro,Small and Medium EnterprisesMSPMinimum Support PricesMSPMineral Security Partnership MtCO2eMillion Tonnes of CO2 Equivalent MTMMarked to MarketMTOE Million Tonnes of Oil EquivalentMTPAMillion Tonnes Per AnnumMVAMega Volt AmpMWeqMegaWattEquivalentMWsMegaWattsNABARDNational Ba

151、nk for Agriculture and Rural DevelopmentNADCPNational Animal Disease Control ProgrammeNAFEDNational Agricultural Cooperative Marketing Federation of IndiaNAPCCNational Action Plan on Climate ChangeNAPSNational Apprentice Promotion SchemeNARCLNational Asset Reconstruction Company Ltd.NASNational Acco

152、unts Statistics NASNational Achievement SurveyNASSCOMNational Association of Software and Service CompaniesNavICNavigation with Indian ConstellationNBFCNon-BankingFinancialCompanyNBFCsNon-BankingFinancialCompaniesNCAP-2016National Civil Aviation PolicyNCCFNational Cooperative Consumers Federation of

153、 IndiaNCDCNational Cooperative Development Corporation NCDEXNational Commodity and Derivative ExchangeNCELNational Cooperative Exports LimitedNCERTNational Council for Educational Research and TrainingNCF-SENational Curriculum Framework for School EducationNCIPNational Crop Insurance ProgrammeNCLTNa

154、tional Company Law Tribunal NCOLNational Cooperative Organics LimitedNCQGNewCollectiveQuantifiedGoalNCRNational Capital RegionxxviiNCrFNational Credit FrameworkNCSNational Career ServiceNCTFNational Committee on Trade FacilitationNCVETNational Council for Vocational Education and TrainingNDAsNon-Dis

155、closureAgreementsNDCsNationally Determined ContributionsNDLMNational Digital Livestock MissionNDTSPNationalDeepTechStart-upPolicyNEERNominalEffectiveExchangeRateNEETNational Eligibility cum Entrance TestNEPNational Education PolicyNEPNational Electricity PlanNFANet Foreign AssetsNFHSNational Family

156、Health SurveyNFSANational Food Security ActNFSMNational Food Security MissionNFSM-OS&OPNationalFoodSecurityMission-Oilseeds&OilPalmNGOsNon-GovernmentOrganisationsNHNational Highways NHANational Health AccountsNHAINational Highways Authority of IndiaNHBNational Housing Bank NHsNational HighwaysNIDHIN

157、ational Integrated Database of Hospitality IndustryNIESBUDNational Institute for Entrepreneurship and Small Business Development NIINet Interest IncomeNIMNet Interest MarginNIPNational Infrastructure PipelineNITINational Institution for Transforming IndiaNLBCNarayanpur Left Bank CanalNLMNational Liv

158、estock MissionNLPNational Logistics Policy NMCENational Multi Commodity Exchange NMCGNational Mission on Clean GangaNMHSNational Mental Health SurveyNMPNational Monetisation PipelineNMSANational Mission for Sustainable AgricultureNon-ConvNon-ConventionalNPCINational Payments Corporation of India NPD

159、DNational Programme for Dairy DevelopmentNPKnitrogen,phosphorus,and potassiumNPPNational Perspective PlanxxviiiNPSNational Pension Scheme NRLMNational Rural Livelihood MissionNSDLNational Securities Depository Limited NSILNew Space India LimitedNSQFNationalSkillsQualificationFrameworkNSSONationalSin

160、gleSign-OnNSTINational Skill Training InstituteNSVANari Shakti Vandan AbhiniyamNTRNon-TaxRevenueNWsNationalWaterwaysO&MOperations and MaintenanceOCENOpen Credit Enablement Network OCMSOnline Computerised Monitoring SystemODAOfficialDevelopmentAssistanceODFOpen Defecation FreeODOPOne District One Pro

161、ductODROnline Dispute Resolution OECDOrganisation for Economic Cooperation and DevelopmentOEMOriginal Equipment ManufacturerOFCOptical Fiber CableOFPOOff-FarmProducerOrganisationOFSTEDOfficeforStandardsinEducation,ChildrensServicesandSkillsOIOther InterventionsONDCOpen Network for Digital CommerceON

162、GCOil and Natural Gas CorporationONORCOne Nation One Ration CardOOIOther Operating IncomeOSOWOGOneSunOneWorldOneGridOTCOver-the-CounterPAProvisional Actuals PACSPrimary Agriculture Credit SocietiesPARPerformance and Accountability Reporting PARAKHPerformance Assessment,Review and Analysis of Knowled

163、ge for Holistic DevelopmentPARIVESHPro-ActiveandResponsivefacilitationbyInteractive,Virtuous,andEnvironmentalSingleWindowHubPATProfitAfterTaxPATPerform,Achieve,and Trade PBPBPoshan Bhi Padhai BhiPCIPer Capita IncomePDMCPer Drop More CropPEProvisional EstimatesPFCEPrivate Final Consumption Expenditur

164、e xxixPFMSPublic Financial Management SystemPFRAIPension Fund Regulatory and Development Authority of India PHCPrimary Healthcare CentrePHHPriority Households PIBPress Information BureauPKVYParamparagat Krishi Vikas YojanaPLFSPeriodic Labour Force SurveyPLIProduction Linked Incentive PLI SchemeProdu

165、ction Linked Incentive SchemePLISFPIProduction Linked Incentive Scheme for the Food Processing IndustryPM Poshan Pradhan Mantri Poshan Shakti NirmanPM SVANidhiPradhan Mantri Street Vendors AatmaNirbhar Nidhi PMAASHAPradhan Mantri Annadata Aay Sanraskhan AbhiyanPM-AWASPradhan Mantri Awas YojanaPMAY-U

166、PradhanMantriAwasYojana-UrbanPMEGPPrime Ministers Employment Generation Programme PMFBYPradhan Mantri Fasal Bima YojanaPMFMEPM Formalization of Micro Food Processing EnterprisesPMGProject Monitoring GroupPMGKAYPradhan Mantri Garib Kalyan Anna YojanaPMGKAYPradhan Mantri Garib Kalyan Anna YojanaPMGKYP

167、 M Gareeb Kalyan YojanaPMGS-NMPPM GatiShakti National Master Plan PMGSYPradhan Mantri Gram Sadak YojanaPMIPurchasing Managers IndexPMJJBYPradhan Mantri Jeevan Jyoti Bima YojanaPMJJYPM Jeevan Jyoti YojanaPM-KISANPradhan Mantri Kisan Samman Nidhi PMKMYPradhan Mantri Kisan Maandhan YojnaPMKSYPradhan Ma

168、ntri Kisan SAMPADA YojanaPMKSYPradhan Mantri Krishi Sinchayee YojanaPM-KUSUMPradhanMantriKisanUrjaSurakshaevamUtthaanMahabhiyanPMKVYPradhan Mantri Kaushal Vikas YojanaPM-PRANAMPM Programme for Restoration,Awareness Generation,Nourishment&Amelioration of Mother EarthPMSBYPradhan Mantri Suraksha Bima

169、YojanaPM-SHRIPradhan Mantri Schools for Rising IndiaPM-SYMPradhanMantriShramYogiMaan-DhanPOLPetroleum,Oil and LubricantsPPPPublic Private PartnershipPPPACPublic Private Partnership Appraisal CommitteePRAGATIPro-ActiveGovernanceandTimelyImplementationxxxPRASHADPilgrimage Rejuvenation and Spiritual Au

170、gmentation DrivePRAYAGPlatformforReal-timeAnalysisofYamuna,Ganga,andtheirtributariesPSFPrice Stabilization FundPSLVPolar Satellite Launch VehiclePSPPumped Storage ProjectPSUPublicSectorUndertakingPVPhotovoltaicPvt.PrivatePVTGParticularly Vulnerable Tribal GroupsQIPsQualifiedInstitutionalPlacementsR&

171、DResearch And DevelopmentR&D Research&DevelopmentRADRainfed Area DevelopmentRBCFRisk-BasedCapitalFrameworkRBIReserve Bank of IndiaRBSFRisk-BasedSupervisoryFrameworkRCSRegional Connectivity Scheme RDNRecommended Dose of NutrientsRDSSRevamped Distribution Sector SchemeRERenewable EnergyRERevised Estim

172、atesREERRealEffectiveExchangeRateREEsRare Earth Elements REITsReal Estate Investment Trusts REN21Renewable Energy Policy Network for the 21st CenturyRERAReal Estate(Regulation and Development)Act RF testingRadio Frequency TestingRFIDRadioFrequencyIdentificationRGMRashtriya Gokul MissionRISResearch a

173、nd Information Systemrkmroute kilometreRKVYRashtriya Krishi Vikas YojanaRMBSResidentialMortgage-BackedSecuritiesRMSRabi Marketing SeasonRoAReturn on AssetRoEReturn on EquityRPLRecognition of Prior LearningRRTSRegional Rapid Transit SystemRSETIRural Self Employment Training InstituteRTCRound-The-Cloc

174、kSaaSSoftware as a ServiceSAATHI System for Assessment,Awareness and Training for Hospitality IndustryxxxiSAFSustainable Aviation FuelSAMSevere Acute MalnutritionSAMARTHSustainableAgrarianMissiononUseofAgri-ResidueinThermalPowerPlantSAPCCState Action Plan on Climate ChangeSARFAESISecuritisation and

175、Reconstruction of Financial Assets and Enforcement of Security Interest SBM-GSwachh Bharat Mission GrameenSCBsScheduled Commercial BanksSCMSmart Cities MissionSCOShanghai Cooperation Organisation SCRASecurities Contracts Regulation ActSDFStanding Deposit FacilitySDGSustainable Development GoalsSDGsS

176、ustainable Development Goals SDSC-SHARSatish Dhawan Space Centre SriharikotaSEBISecurities and Exchange Board of India SEWASelfEmployedWomensAssociationSEZsSpecial Economic ZonesSFACSmallFarmersAgri-BusinessConsortiumsSFBsSmall Finance Banks SFTSecurities Financing Transactions SHCSecondary Healthca

177、re CentreSHGSelf Help GroupSHG-BLPSHG-BankLinkageProgrammeSHGsSelf Help GroupsSIBsSystematically Important BanksSIDBISmall Industries and Development Bank of India SIICSkill India International CentreSKUsStockKeepingUnitsSLRStatutory Liquidity RatioSMAMSub Mission on Agricultural MechanizationSMRSma

178、ll Modular ReactorsSO2Sulphur DioxideSPSpecial ProjectsSPECSScheme For Promotion of Manufacturing of Electronic Components And SemiconductorsSPSSanitary and Phytosanitary SPSEsState Public Sector EnterprisesSPVsSpecial Purpose VehiclesSRBSex Ratio at BirthSROsSelf-RegulatoryOrganisationsSRSSpectrum

179、Regulatory SandboxSSESocial Stock ExchangexxxiiSSLVSmall Satellite Launch VehicleSTARSStrengtheningofTeaching-LearningandResultsforStatesSTEMScience,Technology,Engineering,and MathematicsSTPsSewage Treatment PlantsSTTShort-TermTrainingSVAMITVASurvey of Villages and Mapping with Improvised Technology

180、 in Village AreasSVEPStartup Village Entrepreneurship ProgrammeSWAMIHSpecialWindowforAffordableandMid-IncomeHousingSWAMIHSpecialWindowforAffordableandMid-IncomeHousingSWAYAMStudyWebsofActiveLearningforYoungAspiringMindsSWIFTSingleWindowInterfaceforFacilitationofTradeTAsTransaction AdvisorsTBTTechnic

181、al Barriers to Trade TelecomTelecommunicationsTEPATrade and Economic Partnership Agreement THETotal Health ExpenditureTIESTrade Infrastructure for Export Scheme TPATri-PartiteAgreementTPDTonnes Per DayTReDSTrade Receivables Discounting System TTDITravel and Tourism Development Index UAEUnitedArabEmi

182、ratesUDANUdeDeshKaAamNagrikUGCUniversityGrantsCommissionUHWCUrbanHealthandWellnessCentreUJALAUnnatJyotibyAffordableLEDsforALLULBsUrbanLocalBodiesULIPUnifiedLogisticsInterfacePlatformULLASUnderstandingofLifelongLearningforAllinSocietyULPINUniqueLandParcelIdentificationNumberUMANGUnifiedMobileApplicat

183、ionforNew-ageGovernanceUNUnitedNationsUNCTADUnitedNationsConferenceonTradeandDevelopmentUNDPUnitedNationsDevelopmentProgrammeUNESCAPUnitedNationsEconomicandSocialCommissionforAsiaPacificUNFCCCUnitedNationsFrameworkConventiononClimateChangeUNFPAUnitedNationsFundforPopulationActivitiesUNICEFUnitedNati

184、onsChildrensFundUPHCUrbanPrimaryHealthCentreURUnemploymentRateURPUdyamRegistrationPortalUSDUnitedStatesDollarxxxiiiUSOFUniversalServicesObligationFundUTUnionTerritoriesUVsUtilityVehiclesVBSYViksit Bharat Sankalp YatraVCMVoluntary Carbon Market VGFViability Gap FundingViz.Videre Licet(Namely)VRRVaria

185、ble Repo RateVRRRVariable Rate Reverse Repo WASHWater,SanitationandHygieneWEFWorldEconomicForumWEOWorldEconomicOutlookWHOWorldHealthOrganizationWi-FiWirelessFidelityWINDSWeatherInformationNetwork&DataSystemWIPOWorldIntellectualPropertyOrganisationWISE-KIRANWomen in Science and Engineering-Knowledge

186、Involvement in ResearchAdvancement for NurturingWiTeZonesWirelessTestZonesWITSWorldIntegratedTradeSolutionsWPIWholesalePriceIndexWPRWorkerPopulationRatioWQMISWaterQualityManagementInformationSystemWSAWaysideAmenitiesWTOWorldTradeOrganisationYES-TechYield Estimation Based on TechnologyYoYYear-on-Year

187、YoYYear-on-YearZCZPZero Coupon,Zero Principal xxxivList of TablesTable No.TitlePage No.Table I.1Fastergrowthsincethepandemic-inducedcontraction16Table I.2Broad-baseddeploymentofUnionGovernmentcapex21Table II.1Pick-upintransmissiontodomesticlendinganddepositrates42Table II.2Indiasperformanceacrossind

188、icatorsoffinancialinclusionandfinancialeducation56Table II.3Across-countrycomparisonoffinancialinclusionandfinancialeducationparameters56Table II.4Indiahasthesecond-largestmicrofinancesector60Table II.5Market capitalisation to GDP ratios across countries 65Table IV.1Key aspects of Indias trade 108Ta

189、ble IV.2Resilient performance of service trade 118Table IV.3Indias key external debt indicators:A snapshot of stability152Table VI.1Institutional architecture of Carbon market in India200Table VII.1Trends in social services expenditure by general government210Table VII.2Key healthcare schemes221Tabl

190、e VII.3Mental health programmes in India226Table VII.4Government initiatives in school education234Table VII.5Status of school infrastructure239Table VII.6Enrolment in higher education from various categories 241Table VII.7Quality of life in rural areas255Table VII.8Key indicators on MGNREGS257Table

191、 VIII.1Indianfactoriescouldhiremoreworkersbyadoptingcompetitiveper-worker space standards287Table VIII.2Progress of skill development programmes310Table X.1Growth in production,consumption and import of coal353Table X.2Number of vehicles incentivised under Phase II of the FAME Scheme364Table X.3Indu

192、stry-wiseGrowthincreditdeployment371Table X.4Industrial R&D Facts in India:FY19 to FY21 average372Table XI.1India ranked 39th in Travel and Tourism Development Index,2024389Table XII.1Infrastructure-relatedFDI:Keyratios409xxxvList of ChartsChart No.TitlePage No.Chart I.1Growth:Context Matters.Macroe

193、conomic and political situation of the global economy2Chart I.2Global economy registers strong growth3Chart I.3Allmajoreconomieshavesurpassedpre-pandemicGDPlevels4Chart I.4Global PMI also corroborates strong growth momentum5Chart I.5Easing of global supply chain pressure5Chart I.6Geopolitical risk p

194、erceptions have softened since October 20235Chart I.7Declininginflationarypressuresacrosscountries6Chart I.8Policy rates remain high6Chart I.9Moderation in global commodity price indices6Chart I.10InversionofUSyieldcurvereflectingenhancedexpectationofratecut7Chart I.11FinancialConditionshaveeasedint

195、heUS7Chart I.12Fiscaldeficitedgedupacrosscountries8Chart I.13Uptickinglobaldebtin20238Chart I.14Merchandise trade growth declines in 20239Chart I.15WeakeningFDIinflows9Chart I.16Carry-forwardofmomentumineconomicgrowth9Chart I.17Broad-basedgrowth10Chart I.18Private consumption steady as investment dr

196、ives growth10Chart I.19Vehicle sales in rural areas have recovered smartly since the pandemic11Chart I.20Greater general government focus on building productive capacities12Chart I.21Steadily rising private corporate capex12Chart I.22Increased household savings in the form of physical assets13Chart

197、I.23Record housing sales in top 8 cities13Chart I.24SCBs catering to investment demand13Chart I.25Large corporates tapping corporate bond markets13Chart I.26Arecoverytopre-pandemictrajectoryinGDP14Chart I.27Gap from trend reducing steadily14Chart I.28No permanent losses in output capacity14Chart I.2

198、9No permanent consumption losses14Chart I.30Investmenthastakenoff15Chart I.31IndustrialGVAgrowingfasterthanpre-pandemictrajectory15Chart I.32Services GVA lagging15Chart I.33Steadilydecliningdeficitratios17Chart I.34Decompositionoffiscaldeficitshowsincreasinginvestmentorientation17Chart I.35Consisten

199、tincreaseinrevenuereceiptsdrivenbybothtaxandnon-taxrevenue18Chart I.36Increase in gross tax revenue to GDP ratio driven by strong direct tax growth18xxxviChart No.TitlePage No.Chart I.37Tax revenues register steady increase 18Chart I.38RobustE-waybillgenerationcorroboratesstrongeconomicgrowthmomentu

200、m19Chart I.39Prudent management of expenditure20Chart I.40IncreasinguniongovernmenteffectivecapextoGDPratio20Chart I.41Prioritising productive expenditure20Chart I.42Improving quality of expenditure20Chart I.43Stategrossfiscaldeficitunderthe3percentofGDPmark23Chart I.44Improving quality of states ex

201、penditure23Chart I.45States debt burden is gradually easing23Chart I.46Progressive nature of transfers to states24Chart I.47Statestaxefforts24Chart I.48Total expenditure of states24Chart I.49Fiscaldeficitofstates24Chart I.50GeneralgovernmentliabilitiestoGDPratiocomeofftheirpeakinFY2125Chart I.51Prim

202、arydeficitdeclines,and,growth-interestratedifferentialremainspositive25Chart I.52Decliningcoreinflationbutvolatilefoodinflation27Chart I.53Indiaahigh-growthandlow-inflationeconomy27Chart I.54CAD narrowed to 0.7 per cent of GDP in FY2428Chart I.55FPIinflowsaidedinfundingCADandbuildingForexreserves28C

203、hart I.56ThewasoneofthemoststablecurrenciesoverApr23Jun2429Chart I.57Forexreservessufficienttocoveraround11monthsofimports29Chart I.58Areductioninmacro-vulnerabilitydespiteincreasedexternaluncertainty 29Chart I.59Beneficiariesundervariousgovernmentwelfareschemessincetheirinception32Chart I.60Declini

204、ng unemployment rate and improvement in labour force participation rate and worker population ratio33Chart I.61Reducedrural-urbaninequality33Chart I.62Population that is multidimensionally poor has declined33Chart II.1Moderation in growth in Reserve Money(M0)40Chart II.2Growth in Broad Money(M3)40Ch

205、art II.3Higher Money Multiplier in FY24,indicating higher liquidity in the market41Chart II.4aLiquidity conditions42Chart II.4bPolicy corridor and overnight call money rate42Chart II.5Double-digitgrowthincreditdisbursalbySCBs43Chart II.6Broad-basedgrowthinbankcreditacrosssectors46Chart II.7aDecline

206、in GNPAs of SCBs47Chart II.7bCRAR well above the required norms47Chart II.8aReturn on Assets(Annualised)48xxxviiChart No.TitlePage No.Chart II.8bReturn on Equity(Annualised)48Chart II.9High Net Interest Margin of SCBs48Chart II.10aNumber of resolved cases through approved resolution plans52ChartII.1

207、0bRealisation by creditors52Chart II.11Rising share of rural MFI borrowers61Chart II.12Rise in loan disbursement by MFIs61Chart II.13Remarkable performance of the Indian Stock Market64Chart II.14SIP Investment on a rising trajectory68Chart II.15EasingofstressintheIndianfinancialsystemreflectedinFSSI

208、82Chart II.16Broad-baseddeclineinstresslevelsacrossfinancialsectors82Chart III.1IndiasinflationlowerthanEMDEsin202386Chart III.2AEstendtohavelowerinflationcomparedtoEMDEs86Chart III.3Indiaisclosertoitsinflationtargetcomparedtomostothereconomies87Chart III.4Indiahasoneofthelowestaveragedeviationsfrom

209、inflationtarget87Chart III.5RetailheadlineinflationwaslowestinFY24sincethepandemic88Chart III.6Decliningtrendinheadlineandcoreinflation88Chart III.7Clothing&Footwear and Fuel&Light groups saw a substantial declineininflationrateinFY2489Chart III.8Decreasing global energy index in FY2489Chart III.9De

210、creaseinLPGinflationduetopricecut/subsidy89Chart III.10Declineinpetrolanddieselinflationduetopricereductionmeasures89Chart III.11Breakdownofcoreinflationintoitscomponents90Chart III.12Coreinflationdeclinedto4yearlowinFY2490Chart III.13Monetarypolicytransmissionevidentineasingcoreinflation90Chart III

211、.14ContributionofcoreservicesinflationinFY24lowerthanpre-pandemic level91Chart III.159-yearlowcoreservicesinflationdrivenbylowerhousinginflation91Chart III.16PersistentcoreservicesinflationriskinAEs92Chart III.17Consumerdurablesinflationclosingtopre-pandemiclevels92Chart III.18Increasedgoldandclothp

212、ricesdroveupinflationindurables92Chart III.19(a)&(b)DecliningtransportcomponentledtoeasingConsumerNon-Durableinflation93Chart III.20Contributionoffooditemstofoodinflation94Chart III.21Elevatedinflationrateinvegetables,pulsesandspices94Chart III.22Co-movementofglobalanddomesticedibleoilprices96Chart

213、III.23Export ban on sugar led to stable sugar prices in India96Chart III.24InterstatevariationsinretailinflationinFY2497Chart III.25Interstatevariationsinrural-urbaninflationgapinFY2498Chart III.26Interstatevariationsininflationarehigherintheruralsector98Chart III.27Stateswithhigherinflationshowawid

214、errural-urbangap98Chart III.28Expected decline in overall commodity prices in 202599Chart IV.1Growth in global merchandise trade:actual and forecast106xxxviiiChart No.TitlePage No.Chart IV.2Rising trade openness indicator 107Chart IV.3Indias rising share in global goods and services exports108Chart

215、IV.4Indias overall trade performance in the last ten years109Chart IV.5Indias merchandise trade performance110Chart IV.6Compositionofmerchandiseexportsacrossvariousclassifications110Chart IV.7Trend in Indias exports and imports of toys111Chart IV.8Rising defence exports 112Chart IV.9Trend in footwea

216、r exports113Chart IV.10Rising domestic production,domestic demand and exports of smartphones114Chart IV.11Indias export destination115Chart IV.12Compositionofmerchandiseimportsacrossvariousclassifications117Chart IV.13Remarkable performance of Indias services trade in the last ten years118Chart IV.1

217、4Remarkable growth of GCCs in India 119Chart IV.15RisingshareofGVC-relatedtradeingrosstrade122Chart IV.16Shareofdifferentmanufacturingsub-sectorsinGVC-relatedtrade123Chart IV.17Shareofdifferentservicessub-sectorsinGVC-relatedtrade123Chart IV.18Rise in the share of pure backward GVC participation 124

218、Chart IV.19Decline in dwell time for India132Chart IV.20Improvement in CAD during FY24133Chart IV.21Current account balance as a percentage of GDP:India vs select countries133Chart IV.22IndiaemergedasthetopremittancerecipientintheWorldin2023134Chart IV.23Higherremittancesoffsettingthegoodstradedefic

219、itandstabilisingCAD135Chart IV.24Association between gross remittances and crude oil price of Indian Basket136Chart IV.25PositiveassociationofINR/USDandremittances137Chart IV.26aNetFPIinflowsintoIndia138Chart IV.26bNetEquityinflowsamongemergingmarketpeersduringFY24138Chart IV.27aModerationinnetFDIin

220、flowsinFY24owingtoariseinrepatriation139Chart IV.27bDeclineinnetFDIinflowsaspercentofGDP139Chart IV.28TrendsinFDIequityinflowstobothIndustryandServices140Chart IV.29aShare of physical and digital FDI in total FDI141Chart IV.29bGlobalcapitalflowsintechstart-ups141Chart IV.30aInvestmentintentionasapre

221、dictoroffutureFDIInflows141Chart IV.30bPositivecorrelationbetweenFDIinflowsandconcentrationofFDIacross sectors141Chart IV.31Indiawitnessedthemostsignificantincreaseinforeignexchangereserves holdings in FY24145Chart IV.32AdequacyofIndiasforexreserves:Across-countryperspective146Chart IV.33Volatilityo

222、fRupee/USDexchangerate146Chart IV.34Exchangeratevolatilityofothercountriesw.r.tUSDinFY24147xxxixChart No.TitlePage No.Chart IV.35Trends in net purchase and sale of foreign currencies by RBI during FY24147Chart IV.36MovementofIndexof40-CurrencyNEERandREER148Chart IV.37aNet IIP and as a percentage of

223、GDP150Chart IV.37bAsset liabilities ratio150Chart IV.38Indias stable external debt position and vulnerability indicators151Chart VI.1Indiasprimaryenergysupplymixin2022-23andinstalledpowercapacity in 2024 in terms of fuel sources188Chart VI.2EnergyflowinIndia189Chart VI.3Target emissions reductions t

224、o achieve the NDC commitment by 2030190Chart VI.4Land per capita in India is the lowest among the G20,2021195Chart VI.5Geographical distribution of critical mineral global supply chains,2023197Chart VI.6Shareofrefinedmaterialproductionbycountryin2020and2023197Chart VI.7Geographical concentration of

225、Magnet rare earths over the years198Chart VII.1(a)Annual CSR spending in India216Chart VII.1(b)TotalCSRspent:Topfivestates,FY22217Chart VII.2Decline in Multidimensional Poverty219Chart VII.3 Decline in the deprivations across the multidimensionally poor population219Chart VII.4CAGRinMPCE:2011-12to20

226、22-23221Chart VII.5a Government health expenditure and out of pocket expenditure as per cent of total health expenditure 230Chart VII.5bSocial security expenditure and private health insurance expenditure as per cent of total health expenditure 230Chart VII.6Total students enrolments in higher educa

227、tion241Chart VII.7Growthinenrolmentinhighereducationinstitutionsbetween2014-15and2021-22242Chart VII.8Gross expenditure on R&D245Chart VII.9Contribution to high quality research papers by top ten countries in the Nature Index246Chart VII.10Participation of government,business enterprise&higher educa

228、tion sector,2020246Chart VII.11Composite indicator of rural activity256Chart VII.12Ratio of proportion of MGNREGA fund released to States and proportion of their Poor population259Chart VII.13UnemploymentrateandMGNREGAfundreleasedinFY2022-23260Chart VII.14Comparisonofper-capitaincomesandNotifiedwage

229、rates260Chart VII.15Indias progress in SDGs267Chart VII.16State/UTwiseperformanceonSDGIndiaIndex268Chart VIII.1Improving annual labour market indicators 273Chart VIII.2Declining quarterly urban employment rate274Chart VIII.3Distributionofworkersbybroadindustrydivision,2022-23274Chart VIII.4Trend in

230、broad category wise employment status275xlChart No.TitlePage No.Chart VIII.5Shareoffemaleworkforceinself-employment275Chart VIII.6Youth employment indicators276Chart VIII.7Rural India drives the rise in female LFPR 277Chart VIII.8Trend in employment in organised manufacturing sector278Chart VIII.9Tr

231、end in employment per factory278Chart VIII.10Growth in wages per worker278Chart VIII.11Top six states in the number of factories and employment279Chart VIII.12Topsixstatesinfiveyearsgrowthinemploymentinfactories279Chart VIII.13Predominance of smaller factories while larger factories generate a bigge

232、r chunk of employment280Chart VIII.14Larger factories pay better wages280Chart VIII.15Higher employment growth in larger factories281Chart VIII.16Share in factory employment in FY22281Chart VIII.17Total growth in employment in 5 years282Chart VIII.18Rising EPFO membership282Chart VIII.19Net payroll

233、addition in EPFO283Chart VIII.20Vacancies mobilised under NCS283Chart VIII.21India has a higher overtime wage premium286Chart VIII.22Number of activities restricted for women across states287Chart VIII.23a YoY Growth in nominal rural wages,Men289Chart VIII.23bYoY Growth in real rural wages,Men289Cha

234、rt VIII.24Annualrequirementfornon-farmjobcreation2024-2046297Chart VIII.25Growthcontractstaffingworkforceinpast10years298Chart VIII.26Sectoraldistributionofflexiworkforcein2023299Chart VIII.27Impact of lack of access to childcare:A conceptual model304Chart VIII.28Riseinthepercentageofpersonsaged15-2

235、9yearswhoreceivedformal vocational/technical training309Chart VIII.29IndiaatWorldSkillsCompetitions309Chart IX.1 Growth of agriculture and allied sectors320Chart IX.2International productivity comparison for major kharif crops321Chart IX.3Production of major crops322Chart IX.4GCF of agriculture&alli

236、ed Sector as a percentage of GVA of agriculture&allied sector324Chart IX.5WaterusepertonoffoodformajorcropsIndiaandworldaverage326Chart IX.6MSPofmajorcropsfrom2021-22to2023-24330Chart IX.7Growth of cereals and poultry products337Chart IX.8NumberofsinglestateandMulti-statecooperatives(MSCS)registered

237、 by major states340Chart IX.9Share of FPI in manufacturing GVA and growth of FPI in per cent341Chart IX.10Food Subsidy released344Chart X.1Share of industry and its components in total GVA348Chart X.2Annual growth of industry and its components348xliChart No.TitlePage No.Chart X.3India Manufacturing

238、 Purchasing Managers Index348Chart X.4Average annual growth in components of manufacturing GVA348Chart X.5Change in share of manufactured products GVA in total GVA349Chart X.6Installed capacity,production and capacity utilisation of cement industry350Chart X.7Averageannualgrowthoffinishedsteel352Cha

239、rt X.8AnnualgrowthoffinishedSteel352Chart X.9Indiawasanetexporteroffinishedsteelin4outofthelast5years352Chart X.10Coal production as per cent of domestic consumption353Chart X.11Turnover,export and import of the pharma sector355Chart X.12Domestic turnover growth in the pharma sector355Chart X.13Shar

240、eofnon-corporateGVAinthetotaltextile(includingapparel)GVA358Chart X.14Total exports of textile products358Chart X.15Growth in production and trade of electronics items360Chart X.16Performance of automotive parts industry362Chart X.17Annual growth intheproductionofdifferentcategoriesofautomobiles363C

241、hart X.18Actualsector-wiseinvestmentunderthePLIscheme365Chart X.19Guarantees approved under CGTMSE increased considerably366Chart X.20Improvement in performance of CPSEs between FY19 and FY23369Chart X.21Numberofprofit-makingCPSEshasimproved370Chart X.22Growth in deployment of gross bank credit to i

242、ndustry370Chart X.23Shareofsub-sectorsinindustrialR&DspendinginIndia372Chart XI.1Increasing trend of GVA in the services sector376Chart XI.2Strong momentum in services sector GVA growth376Chart XI.3PostCOVIDfirmingupintheshareoftheservicessectorinoverallGVA377Chart XI.4Broad-basedgrowthintheservices

243、sector377Chart XI.5Economicactivity-wisedistributionofactivecompanies378Chart XI.6PMIServicestouchednewheightsinFY24amidstglobalflux379Chart XI.7Exportcontributionsoffourkeysub-sectorswithinservices380Chart XI.8Robustbankcreditbuild-upandgrowthinFY24381Chart XI.9ModerationinFDIequityinflowsintheserv

244、icessector382Chart XI.10Persistentprogressinrailwayfreighttraffic384Chart XI.11Railwaypassengertrafficonrecoverypathpost-COVID384Chart XI.12Sustained increase in shipping tonnage capacity385Chart XI.13Growthinaircargotraffic386Chart XI.14Accelerating growth in air passengers handled386Chart XI.15Ste

245、ady progress in Indias ranking in international tourist arrivals387Chart XI.16Resilient recovery of international tourist arrivals 387Chart XI.17Hospitality statistics 388Chart XI.18Increase in individual home loans 390 xliiChart No.TitlePage No.Chart XI.19Breakup of revenue of GCCs by functions394C

246、hart XI.20DeepTechusageisbecomingmainstreaminIndiastechstart-upecosystem396Chart XII.1UnionGovernmentscapitalexpenditureanditssupportforCPSEsand State Governments expands considerably407Chart XII.2State Governments combined capital expenditure also expands robustly407Chart XII.3Outstanding credit to

247、 infrastructure:March 2024408Chart XII.4Average annual growth rate in outstanding credit from March 2020 to March 2024408Chart XII.5Share in change in outstanding credit from March 2020 to March 2024408Chart XII.6Inflowofexternalcommercialborrowingtoinfrastructuresectors408Chart XII.7Funding of infr

248、astructure sectors through domestic capital market debt sources409Chart XII.8Funding of infrastructure sectors through equity issuance409Chart XII.9FDIequityinflowstoinfrastructuresectorsduringFY24409Chart XII.10Total capital outlay for investment in road transport411Chart XII.11NHNetwork-laneaugmen

249、tation411Chart XII.12Capital expenditure on railways414Chart XII.13Year wise production of coaches,locomotive and wagons415Chart XII.14Vande Bharat trains and production of coaches 415Chart XII.15Paceofrailwayelectrification416Chart XII.16Track length commissioned416Chart XII.17Capital expenditure b

250、y the government towards ports,shipping,and waterways417Chart XII.18Major ports capacity417Chart XII.19Share of project cost based on key areas under Sagarmala418Chart XII.20Share of projects based on key areas under Sagarmala418Chart XII.21CoastalshippingandIWT420Chart XII.22Investment in renewable

251、s424Chart XII.23Energy storage capacity requirement426Chart XII.24Percentageshareindifferentsourcesininstalledcapacityofpower427Chart XII.25Percentage share in power generation427Chart XII.26TotalOutlayforAMRUT1.0and2.0433Chart XII.27Value of projects completed under Smart City Mission 434Chart XII.

252、28Number of projects completed under Smart City Mission 434Chart XIII.1Greenhouse gas emissions across the supply chain for various food products450Chart XIII.2Energy Intensity of Transition452Chart XIII.3Storage costs increase renewables lifecycle cost453Chart XIII.4Power Demand from data centres a

253、nd other large loads455Chart XIII.5MajorEconomieswiththeirtotalandper-capitaGHGemissionss457xliiiChart No.TitlePage No.Chart XIII.6Low-CarbonEconomiesandtheirper-capitaemissions458Chart XIII.7InternationalDeclarationsthatcommittedtodifferentideas461Chart XIII.8Average fraction of harvest used for Di

254、rect food,feed,and processing(1964-1968)463Chart XIII.9Average fraction of harvest used for Direct food,feed,and processing(2009-2013)464Chart XIII.10LiFE Themes469Chart XIII.11Per-capitaWaterAvailability2025472xlivList of BoxesBox No.TitlePage No.Box I.1Growth in GDP,GVA,and their components ensure

255、 no permanent losses in demand and output14Box I.2Strengthening the Statistical System30Monetary Management and Financial IntermediationBox II.1EnhancingtheflowofbankcredittoMSMEsthroughformalisation44Box II.2Role of IBC in reviving stalled real estate projects and strengthening home-buyers rights53

256、Box II.3The synergy of technology and Indian capital markets:Driving growth and efficiency65Box II.4Social Stock Exchanges in India:Making progress70Box III.1Elevatedrisksforcoreservicesinflationinadvancedeconomies91Box III.2AdministrativemeasurestocontainfoodinflationinFY2495Box IV.1Productspecific

257、successstoriesofboostingexports111Box IV.2Journey of Global Capability Centres in India 119Box IV.3The trend in Indias GVC participation and change in the sectoral compo-sition122Box IV.4Indian Districts as Export Hubs125Box IV.5Factorsinfluencinginwardremittances135Box IV.6China Plus One strategy14

258、3Box IV.7Trade and Financial channels of the Exchange rate148Box V.1The Chinese manufacturing juggernaut:A threat to EMEs162Box V.2Indias expanding obesity challenge:Observations from National Family Health Survey164Box V.3Afarmer-friendlypolicyframework167Box V.4Leveragingmarketfinance:Indiascataly

259、ticuseofMultilateralInvestmentGuarantee Agency171Box V.5Mission Karmayogis holistic approach to building state capacity in India174Box VI.1Casestudyonmicroirrigation:Roleofcommunity-ledwatergovernance186Box VI.2Stepstakentoimproveenergyefficiency190Box VI.3Round-the-clock(RTC)supplyofrenewableenergy

260、(RE)193Box VI.4Geographical concentration of critical and rare earth minerals196Box VI.5ReportonSynchronizingEnergyTransitionstowardsPossibleNet-ZeroforIndia:AffordableandCleanEnergyforAll198Box VI.6Evolution of Carbon markets201Box VI.7LiFE in action:Indias innovative green credit program202Box VII

261、.1Transforming data governance in India:DGQI 2.0 and beyond213Box VII.2Baramulla and Gumla progress from Aspiration to Transformation215Box VII.3CorporateSocialResponsibilityBuildingbridgesbetweenprofitandpurpose216Box VII.4Health insurance Programmes and impact on credit market outcomes230Box VII.5

262、PoshanBhiPadhaiBhi:Pre-schoolsnetworkanchoredinAnganwadis233xlvBox VII.6Vidyanjali:A School Volunteer Programme237Box VII.7Indias online learning architecture243Box VII.8GirlsofKrishnagiriwritingtheirowndestinieswiththeinkoffinancialindependence252Box VII.9IsMGNREGSspendinganindicatorofruraldistress

263、?258Box VII.10Initiatives fostering rural entrepreneurship263Box VII.11Digitisation initiatives to improve rural governance266Box VIII.1Initiatives to foster job creation and workers welfare283Box VIII.2Re-balancinglabourregulationstopromoteemployment286Box VIII.3Ricardos pivot and the centrality of

264、 technological choices291Box VIII.4Flexi job market in India298Box VIII.5Sahyadrissuccessinagro-processing300Box VIII.6Building a better care ecosystem306Box VIII.7Partnering with industry for skilling313Box VIII.8PM Vishwakarma Scheme:Making progress314Box VIII.9Re-calibratingtheapprenticeshipframe

265、work315Box IX.1Recent technology interventions in PMFBY327Box IX.2Future market for agriculture commodities in India328Box IX.3Policyledinterventionstoimprovewatermanagement-NationalandIn-ternational Experience332Box IX.4Flexible,farmer-friendlyandecologicallysustainablefertilisersubsidy:Asuggested

266、way forward334Box IX.5Digital agriculture:Path to digital revolution336Box IX.6Initiatives to address scope and functioning of PACS339Box X.1Steel sector initiatives353Box X.2Recent initiatives,challenges and opportunities in the coal sector354Box X.3Recent initiatives,challenges and outlook of the

267、pharma sector356Box X.4Need to enhance and reimagine pharma R&D357Box X.5Challenges and supportive initiatives in the textile industry359Box X.6Initiatives to Boost Electronics Industry352Box X.7PolicysupportforautomobilesandE-mobility363Box X.8MSMEs credit schemes366Box X.9Reimagining building regu

268、lations to augment manufacturing capacity367Box X.10ODOP:Crafting regional pride and economic empowerment368Box X.11Effortstopromotestart-upsandinnovationcultureinIndia372Box XI.1The services sector continues to command the highest share of the number of registered companies378Box XI.2Building trust

269、:How RERA is reshaping real estate391Box XI.3ONDC-Democratisingdigitalcommerce399Box XII.1Major mechanisms for fostering Public Private Partnership410Box XII.2Key initiatives for enhancing road connectivity412Box XII.3Key initiatives for road development413Box XII.4Initiatives for railway enhancemen

270、t414xlviBox XII.5Key initiatives in the railway sector415Box XII.6Key Initiatives for ports418Box XII.7New segments Drones,Leasing and MRO421Box XII.8Revamped distribution sector scheme422Box XII.9Some key initiatives in the power sector423Box XII.10Major programmes,projects,and initiatives in renew

271、able energy sector424Box XII.11Key policies in renewable energy sector426Box XII.12Challenges in renewable energy eector426Box XII.13Major programmes,projects,and initiatives in sports sector428Box XII.14Steel(Barthan)Bank:The idea of Siddhipet district in Telangana429Box XII.15Sailam:A model villag

272、e of Mizoram for sustainable rural water supply429Box XII.16Major programmes water resource sector430Box XII.17Major initiatives in the water management sector432Box XII.18AtalMissionforRejuvenationandUrbanTransformation433Box XII.19Smart Cities Mission434Box XII.20CaseStudiesonSwatchBharatMissionUr

273、ban435Box XII.21Private participation in the space sector436Box XII.22Building Information Modelling437Box XII.23BharatNet Project438Box XII.24GICloud-MeghRaj440Box XII.25Implementation of NLP gains steam443Box XIII.1Indias achievements against targets for climate change448Box XIII.2WEO-2023proposes

274、aglobalstrategyforgettingtheworldontrackby2030449Box XIII.3WillingnesstoChangeandWillingnesstopayforEnvironmentallySus-tainable Policies460CHAPTER01STATE OF THE ECONOMY:STEADY AS SHE GOESIndias calibrated response to the pandemic on the economic front included three salient components.The first has

275、been the focus on public spending on infrastructure,which kept the economy afloat by creating a strong demand for jobs and industrial output and triggered a lagged yet vigorous private investment response.Stronger balance sheets of the financial and non-financial private sector helped,aided by a dec

276、ade of supporting initiatives by the Government and the Reserve Bank of India.The second has been partly a natural response of business enterprise and public administration amidst adversities,i.e.,digitalisation of service delivery.The public policy focus and nurturing of processes and frameworks in

277、 digital technology greatly helped this irreversible and transformational change.The third has been embodied in the Atmanirbhar Bharat Abhiyan in terms of targeted relief to different sectors of the economy and sections of the population,and structural reforms that assisted a firm recovery and incre

278、ased the medium-term growth potential.Global troubles,supply chain disruptions,and vagaries of monsoons intermittently stoked domestic inflationary pressures,which were,to a great extent,managed by administrative and monetary policy responses.The fiscal balances of the general governmentcentral and

279、State Governments taken together-have improved progressively despite expansionary public investment.Tax compliance gains driven by procedural reforms,expenditure restraint,and increasing digitisation helped India achieve this fine balance.The external balance has been pressured by subdued global dem

280、and for goods,but strong services exports largely counterbalanced this.Global output is now somewhat more resilient than in 2022,inflationary pressures are shrinking,and trade is set to recover,should there be no further geo-political shocks or flare-ups.However,the chances of geopolitical disturban

281、ces and conflicts have only gone up in recent times.The net impact of these developments has been that the Indian economy recovered and expanded in an orderly fashion in the last three years.The real GDP in FY24 was 20 per cent higher than its level in FY20,a feat that only a very few major economie

282、s achieved,while also leaving a strong possibility for robust growth in FY25 and beyond.Growth has been inclusive with a reduction in unemployment and multi-dimensional poverty and an increase in labour force participation.Overall,the Indian economy looks forward to FY25 optimistically,anticipating

283、broad-based and inclusive growth.Economic Survey 2023-242GLOBAL ECONOMIC SCENARIO1.1 After a year marked by global uncertainties and volatilities,the global economy achieved greater stability in 2023.While uncertainty stemming from adverse geopolitical developments remained elevated,global economic

284、growth was surprisingly robust.As per the World Economic Outlook(WEO),April 2024 of the International Monetary Fund(IMF)1,the global economy registered a growth of 3.2 per cent in 2023,though marginally lower than in 20222 and averageChart I.1:Growth:Context matters.Macroeconomic and political situa

285、tion of the global economy 3.53.23.520222023Real GDP growth(%)?8.76.83.520222023CPI Inflation(%)2011 to 2019 average?5.20.53.720222023Export volume growth of goodsand services(%)1.61.51.820222023FDI Outflows(%of GDP)?157.6121.795.220222023Geopolitical Risk Index2011 to 2019 average?2.2-0.6-0.1202220

286、23Global Supply Chain PressureIndexSource:World Economic Outlook Database,April 2024,IMF,UNCTADstat database,Federal Reserve Bank of New York,Economic Policy Uncertainty;Notes3,4 1 International Monetary Fund,World Economic Outlook,April 2024,page 10(https:/ International Monetary Fund,World Economi

287、c Outlook,October 2023,page 12(https:/ Geopolitical Risk Index is based on a tally of newspaper articles covering geopolitical tensions.Ten newspapers are considered.The index is calculated by counting the number of articles related to adverse geopolitical events in each newspaper for each month(as

288、a share of the total number of news articles).A lower value indicates lower risk.4 Global Supply Chain Pressure Index readings measure standard deviations from the indexs historical average.A higher value indicates increased supply chain pressure.State of the Economy3for 2011-19 but higher compared

289、to the projection of 2.8 per cent as per the April 2023 WEO5.The context in which the growth of 3.2 per cent in 2023 has been achieved is markedly different compared to the 2011-19 period.Inflationary pressures have been significantly higher on account of the persistence of core inflation.Global tra

290、de moderated due to rising geopolitical tensions,cross-border restrictions and slower growth in advanced economies(AEs).The muted trade growth occurred despite the easing of supply chain pressures.Further,geopolitical developments and monetary policy changes across countries resulted in increased ca

291、ution among investors,culminating in moderation in foreign direct investment(FDI)flows.Chart I.2:Global economy registers strong growth3.52.64.12.81.33.93.21.64.33.51.94.80123456World OutputAdvanced EconomiesEmerging Market and DevelopingEconomiesPer cent20222023(Apr-23)2023(Apr-24)2011 to 2019 aver

292、ageSource:World Economic Outlook Database,April 2024 and April 2023,IMF1.2 Both emerging market economies(EMEs)and AEs achieved higher growth in 2023 than projected a year ago.Almost all major economies have surpassed the pre Covid-19 pandemic(hereinafter as pandemic)real gross domestic product(GDP)

293、levels in 2023.However,growth has been diverse across countries,raising prospects of increasing divergences.Some economies,including India and China,have attained GDP levels 20 per cent higher in 2023 compared to 2019 levels.Among AEs,the US witnessed continued growth momentum.However,economic activ

294、ity remains subdued in the Euro area,although the magnitude of the downturn has eased.1.3 The stark difference in the economic performance of countries has been on account of domestic structural issues,uneven exposure to geopolitical conflicts and the impact of monetary policy tightening.The economi

295、c shocks resulting from the Russia-Ukraine conflict had an outsized impact on Europe,leading to subdued growth in large countries like Germany and France.The US also faced high inflationary pressures and consequently raised the policy rates substantially.But,the pass-through to outstanding household

296、 mortgages was limited on account of the high share of fixed-rate mortgages and corporate debt being termed out at fixed 5 International Monetary Fund,World Economic Outlook,April 2023,page 9(https:/ Survey 2023-244rates6,limiting the impact of higher policy rates on economic activity7.India registe

297、red a steep decline in economic growth during the pandemic but recovered swiftly,aided by strong private consumption and government impetus to infrastructure investment.China,on the other hand,had only a slight moderation in growth during the pandemic on account of swift policy actions,including a h

298、igh vaccination rate8,but growth has slowed subsequently due to structural issues.Japan,post-pandemic,went through subdued growth but is expected to turn around in 2024,driven by a weak yen and improved consumer spending.Chart I.3:All major economies have surpassed pre-pandemic GDP levels Year in wh

299、ich crossed pre pandemic GDP(constant prices,national currency)Ratio of GDP(constant prices,national currency)in 2023 to corresponding level in 2019 Brazil 2021 107 China 2020 120 France 2022 102 Germany 2022 101 India 2021 120 Indonesia 2021 112 Italy 2022 103 Japan 2023 101 Mexico 2022 104 South A

300、frica 2022 101 Thailand 2023 100 United Kingdom 2022 102 United States 2021 108 Source:World Economic Outlook Database,April 2024,IMF,National Accounts Statistics,Ministry of Statistics and Programme implementation;Note:In IMF data,for India 2021 represents 2021-22(FY22)1.4 Apart from GDP estimates,

301、other indicators tracking the performance of the economy also point towards growth resilience.Leading indicators suggest an upturn in global economic activity.The JP Morgan global composite Purchasing Managers Index(PMI)9 registered an uptick since October 2023 with quicker expansion across both man

302、ufacturing and service sectors.The JP Morgan global manufacturing PMI has been improving and stood at a 23-month high in May 202410.6 Termed out is a financial concept used to describe the transfer of short-term debt to long-term debt,allowing companies to improve their working capital and take adva

303、ntage of lower interest rates.7 de Soyres,F.,Herrero,J.G.C.,Goernemann,N.,Jeon,S.,Lofstrom,G.,&Moore,D.(2024).Why is the US GDP recovering faster than other advanced economies?.8 Peoples Republic of China:2021 Article IV Consultation-Press Release;Staff Report;and Statement by the Executive Director

304、 for the Peoples Republic of China,IMF(https:/ J.P.Morgan Global Composite PMI(https:/ J.P.Morgan Global Manufacturing PMI(https:/ of the Economy5Chart I.4:Global PMI also corroborates strong growth momentum?464850525456Apr-22May-22Jun-22Jul-22Aug-22Sep-22Oct-22Nov-22Dec-22Jan-23Feb-23Mar-23Apr-23Ma

305、y-23Jun-23Jul-23Aug-23Sep-23Oct-23Nov-23Dec-23Jan-24Feb-24Mar-24Apr-24May-24IndexCompositeManufacturingServicesSource:S&P Global,PMI Press Releases11 1.5 The escalation of the Red Sea crisis amid heightened geopolitical tensions in the Middle East in October 2023 led to supply chain disruptions,send

306、ing ripples to global trade and operations.The attacks on commercial shipping in the Red Sea led to increased global transportation costs,reflecting the rerouting of cargo.However,the increase in supply chain pressures was transient and modest.Similar sentiments were reflected in the softening of ri

307、sk perceptions.The geopolitical risk index,which spiked after the escalation of the conflict,declined thereafter.However,geopolitical risks are still high and persistent and may worsen in the coming months.Chart I.5:Easing of global supply chain pressureChart I.6:Geopolitical risk perceptions have s

308、oftened since October 2023?-2-101234Jan-22Mar-22May-22Jul-22Sep-22Nov-22Jan-23Mar-23May-23Jul-23Sep-23Nov-23Jan-24Mar-24May-24IndexGlobal Supply Chain Pressure Index?80130180230280330Jan-22Apr-22Jul-22Oct-22Jan-23Apr-23Jul-23Oct-23Jan-24Apr-24IndexGeopolitical Risk IndexSource:Federal Reserve Bank o

309、f New YorkSource:Economic Policy Uncertainty1.6 As the supply chain pressures eased and energy and food price shocks triggered by the Russia-Ukraine conflict faded out,headline inflation across countries declined.After peaking 11 PMI values range between 0 and 100.Value greater than 50 implies expan

310、sion.Values below 50 implies contraction.Economic Survey 2023-246in 2022,inflationary pressures declined considerably in 2023.However,inflation is still above the target in many countries.The easing of supply-chain pressures in tradeable goods in 2023 led to sharp decline in goods inflation in vario

311、us countries,reducing logistic challenges.Core inflation remained sticky on account of services inflation and a strong labour market,especially in most AEs.12Chart I.7:Declining inflationary pressures across countriesChart I.8:Policy rates remain high?024681012201920202021202220232024Per centWorldAE

312、sEMDEs?-101234567ChinaUKIndiaJapanUSEuroAreaPer centApr-21Apr-22Apr-23May-24Source:World Economic Outlook Database,April 2024,IMF;Note:Data for 2024 is forecastSource:Central Bank Policy Rates,BIS Data Portal Chart I.9:Moderation in global commodity price indices?Source:Pink Sheet,World Bank;Note:Da

313、ta as accessed on 1 July 2024.1.7 The persistence of core inflation prompted many central banks to maintain policy rates at a high level or further increase them in 2023,except in China,where the government focussed on giving policy stimulus to revive the economy beset with troubles in the real esta

314、te sector.Many central banks have hinted at the peaking of the interest rate hike cycle in recent monetary 12 BIS Quarterly Review,March 2024 Sectoral price dynamics in the last mile of postCovid-19 disinflation(https:/www.bis.org/publ/qtrpdf/r_qt2403.pdf)State of the Economy7policy review meetings.

315、European Central Bank(ECB)became the first major central bank to cut its policy rate,invoking the first rate cut in nearly five years.ECB lowered its benchmark deposit rate by a quarter percentage point in June 2024.The Federal Open Market Committee(FOMC)participants assessments also indicated rate

316、cuts in 2024,though the projected interest rate cut in the latest FOMC meeting(June 2024)13 is lower than that projected in March 2023.Stronger-than-expected labour market data and persistent inflationary pressures have been a major factor behind the Federal Reserves(the Fed)reluctance to lower rate

317、s.As indicated in the FOMC Meeting statements,from early January 2024 onwards,communication by the Fed increasingly pushed back to dispel excessive market optimism.However,market pricing of various financial instruments indicates greater investor conviction in earlier and deeper rate cuts.This is re

318、flected in the inversion of the yield curve(short-term yields are higher than long-term yields),implying investor expectation of future policy rate cuts.Financial market participants have also eyed a much easier stance,as reflected in the significant easing of National Financial Conditions in the US

319、 in 2023 compared to March 2022,when the Fed began raising rates.Expansionary fiscal policy and the easing of financial conditions have,to a degree,neutralised the monetary policy tightening of the Fed,leaving unanswered questions on the future trajectory of inflation and the US dollar.Chart I.10:In

320、version of US yield curve reflecting enhanced expectation of rate cutChart I.11:Financial conditions have eased in the US?-1.2-1-0.8-0.6-0.4-0.200.20.4Apr-22Jul-22Oct-22Jan-23Apr-23Jul-23Oct-23Jan-24Apr-24Per centGap between US 10 and 2 year bond yield-0.7-0.5-0.3-0.10.101-Jan-2201-Mar-2201-May-2201

321、-Jul-2201-Sep-2201-Nov-2201-Jan-2301-Mar-2301-May-2301-Jul-2301-Sep-2301-Nov-2301-Jan-2401-Mar-2401-May-24National Financial Conditions IndexSource:Federal Reserve Bank of St.LouisSource:Federal Reserve Bank of Chicago;Note14 1.8 On the fiscal front,global general government fiscal deficit(as a per

322、cent of GDP)rose by 1.6 percentage points in 2023 compared to last year.This increase primarily stemmed from a year-on-year(YoY)decline in revenues as windfall revenues from inflation for oil-producing 13 FOMC Projections materials,June 12,2024(https:/ The NFCI is constructed to have an average valu

323、e of zero and a standard deviation of one over a sample period extending back to 1971.Positive values of the NFCI have been historically associated with tighter-than-average financial conditions and vice versa.Economic Survey 2023-248and commodity-exporting countries waned while expenditures remaine

324、d largely stable(IMF Fiscal Monitor,April 202415).Consequently,global public debt also inched up in 2023.Chart I.12:Fiscal deficit edged up across countriesChart I.13:Uptick in global debt in 2023?-20246810WorldAEsEMDEsUSUKBrazilChinaIndiaSouth AfricaPer centGeneral Government Fiscal Deficit as a pe

325、r cent of GDP in 2023Change in Fiscal Deficit as a per cent of GDP in 2023 over 2022?84.299.494.791.393.220192020202120222023Per cent of GDPSource:Fiscal Policy in the Great Election Year,Fiscal Monitor,IMF,April 20241.9 Despite strong global economic growth,as per the WEO data,the global volume of

326、exports of goods and services registered a modest growth of 0.5 per cent in 2023 compared to 2022.The slow growth was driven by lower demand in developed economies and weaker trade in East Asia and Latin America(UNCTAD March Update 2024)16.High energy prices and inflation weighed heavily on the dema

327、nd for manufactured goods,resulting in a decline in world merchandise trade volume for 2023.On the other hand,developments in the services trade were more upbeat,partly offsetting the decline in goods trade(WEO,IMF Database,April 2024).Recurring disruptions,especially since the Russia-Ukraine crisis

328、 and increased concerns about supply-chain resilience also contributed to the slowdown.There is a reallocation of trade along geopolitical lines,with rising cross-border trade restrictions.About 3,000 new restrictions on trade were introduced in 2023,according to Global Trade Alert data(IMF,WEO,Apri

329、l 2024)17.1.10 Concerns regarding geopolitical conflicts,high borrowing costs and global economic fracturing were also reflected in weakening FDI flows.Global FDI flows declined in 2023 compared to 202218.15 Fiscal Policy in the Great Election Year,Fiscal Monitor,IMF(https:/ Global Trade Update,Marc

330、h 2024,UNCTAD(https:/ World Economic Outlook,April 2024,International Monetary Fund,page 14(https:/ World Investment Report 2024,UNCTAD(https:/ of the Economy9Chart I.14:Merchandise trade growth declines in 2023Chart I.15:Weakening FDI inflows0.5-0.4-10.0-5.00.05.010.015.020192020202120222023Growth(

331、Per cent)Volume of exports of goods and servicesVolume of exports of goods?030060090012001500WorldDevelopedEconomiesDevelopingEconomiesUSD Billion20222023Source:World Economic Outlook Database,April 2024,IMFSource:World Investment Report 2024,UNCTADA RESILIENT DOMESTIC ECONOMY1.11 Indias economy car

332、ried forward the momentum it built in FY23 into FY24 despite a gamut of global and external challenges.The focus on maintaining macroeconomic stability ensured that these challenges had minimal impact on Indias economy.As a result,Indias real GDP grew by 8.2 per cent in FY24,posting growth of over 7

333、 per cent for a third consecutive year,driven by stable consumption demand and steadily improving investment demand.On the supply side,gross value added(GVA)at 2011-12 prices grew by 7.2 per cent in FY24,with growth remaining broad-based.Net taxes at constant(2011-12)prices grew by 19.1 per cent in FY24,aided by reasonably strong tax growth,both at the centre and state levels and rationalisation o