Important parameters

Details

Prepared By

Economic Division, Department of Economic Affairs, Ministry of Finance.

Guided By

• V. Anantha Nageswaran(Chief Economic Adviser)
• He was appointed as the Chief Economic Adviser to the Government of India on 28 January 2022, replacing Krishnamurthy Subramanian.

Presented By

• Nirmala Sitharaman (Finance minister)
• She is India’s first full-time female finance minister.
• On 31 May 2019, Nirmala Sitharaman was appointed as the finance and corporate affairs minister.

GDP (gross domestic product)

• Real GDP growth rate in FY 24 – 8.2%.
• India’s GDP growth in FY 24 is 6.5-7%. 
• India’s real GDP is projected to grow between 6.5–7% in 2024-25.
• India’s external debt to GDP ratio was 18.7% in fiscal year 2024, which is a slight decrease from the previous year’s 19%.
• RBI,  International Monetary Fund (IMF) and the Asian Development Bank (ADB) forecasted GDP growth for FY25 at 7.2%.

Current Account Deficit(CAD)

• The Economic Survey highlighted that India’s Current Account Deficit (CAD) narrowed to USD 23.2 billion.
• India’s Current Account Deficit(CAD) is 0.7% of GDP during FY24.
• It is a significant improvement from 2% of GDP in FY23.

Fiscal Deficit

• Fiscal deficit reduced from 6.4% of GDP in FY23 to 5.6% in FY24.
• India continues fiscal consolidation despite global widening of deficits.

Inflation Rate

• Retail inflation dropped from 6.7% in FY23 to 5.4% in FY24 despite global supply disruptions and adverse weather.
• 29 out of 36 States and Union Territories saw inflation below 6% in FY24.
• RBI projects inflation to further decline to 4.5% in FY25 and 4.1% in FY26.
• Food inflation based on the Consumer Food Price Index (CFPI) increased from 6.6% in FY23 and further to 7.5% in FY24.

Foreign Direct Investment (FDI)

• India’s Net FDI inflows to India declined from USD 42.0 billion during FY23 to USD 26.5 billion in FY24 due to a global decline and other factors like Covid-19.
• Gross FDI inflows slightly decreased by 0.6%, from USD 71.4 billion in FY23 to just below USD 71 billion in FY24.

Foreign Exchange Reserve

• India has comfortable foreign exchange reserves and a stable exchange rate.
• Forex reserves as of the end of March 2024 were sufficient to cover 11 months of projected import.
• The Indian Rupee has also been one of the least volatile currencies among its emerging market peers in FY24.

Economic Contribution of Tax Collections and Remittances

• 55% of tax collected accrued from direct taxes and remaining 45% from indirect taxes.
• Indians living abroad are expected to send $124 billion to India in 2024. 
• This is a 3.7% increase from 2023, when remittances to India reached $120 billion.
• Remittances to India are the second largest source of external financing after service exports
• According to the World Bank, India has the largest emigrant population and is the top remittance recipient country in the world.

Service Exports

• According to the Economic Survey 2024, India’s service exports have increased by 4.9% percent.
• India’s service exports have been growing steadily and contributed to 44% of the country’s total exports in 2023-24.

Employment  & Unemployment

• As per the survey, the Indian economy needs to create an average of about 78.5 lakh jobs annually in the non-farm sector by 2030.
• The survey also revealed that 65% of the population is below 35 years of age, yet many lack the required skills.
• Right now, only 51.25% of the youth are employable.
• The unemployment rate has decreased to 3.2% overall and in urban areas, it decreased to 6.7%.
• EPFO memberships grew, with net payroll additions doubling from 61.1 lakh in FY19 to 131.5 lakh in FY24.
• Freelance (Gig) Workforce expected to expand to 2.35 crore by 2029-30.

Amrit kal Growth Strategy Six Key focuses 

• Boosting private investment
• Expanding MSMEs
• Agriculture as a growth engine
• Funding the green transition
•  Bridging the education-employment gap
• Capacity building of states