Economic Survey 2022-23

Union Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman, presented the Economic Survey 2022-23 in the Union Parliament.

What is ‘Economic Survey’?

• The Economic Survey is an annual report card of the economy, which is presented a day before the budget and examines the performance of each and every sector and then suggests future moves.
• The Economic Survey was de-linked from the Budget in 1964 and unveiled in advance in order to provide a context of the latter.
• It consists of two parts – one includes the economic challenges the country is facing and the second is the analysis of the year gone by. Since last year, the two parts have been merged into one.

Why is it significant?

• It reviews the economic development in India over the past financial year by analysing and providing detailed statistical data of all the sectors-industrial, agricultural, industrial production, employment, prices, exports, among others.
• The survey also helps in giving a better understanding of the Union Budget by comprehending the country’s priority for the next financial year and what sectors would need more emphasis.

Who prepares the survey?

It is prepared by the Economics Division of the Department of Economic Affairs of the Finance Ministry under the overall guidance of the Chief Economic Adviser (CEA).

State of the Economy in 2022-23 –

• Recovering from pandemic-induced contraction, Russian-Ukraine conflict and inflation, Indian economy is staging a broad based recovery across sectors, positioning to ascend to the pre-pandemic growth path in FY23.
• India’s GDP growth is expected to remain robust in FY24. GDP forecast for FY24 to be in the range of 6-6.8 %.
• Private consumption is highest since FY15 and this has led to a boost to production activity resulting in enhanced capacity utilisation across sectors.
• The Capital Expenditure of Central Government and crowding in the private Capex led by strengthening of the balance sheets of the Corporates is one of the growth driver of the Indian economy in the current year.
• The credit growth to the MSME sector was over 30.6 per cent on average during Jan-Nov 2022.
• Retail inflation is back within RBI’s target range in November 2022.
• Indian Rupee performed well compared to other Emerging Market Economies in April-December 2022.
• Direct Tax collections for the period April-November 2022 remain buoyant.
• Enhanced Employment generation seen in the declining urban unemployment rate and in the faster net registration in Employee Provident Fund.
• Economic growth to be boosted from the expansion of public digital platforms and measures to boost manufacturing output.

Major highlights of the Survey –

• Indian economy staging a broad based recovery across sectors, positioning to ascend to
  pre-pandemic growth path in FY23.
• Retail inflation is back within RBI’s target range in November 2022.
• Direct Tax collections for the period April-November 2022 remains buoyant.
• Enhanced Employment generation seen in the declining urban unemployment rate and in the faster net registration in Employee Provident Fund.
• Creating public goods to enhance opportunities, efficiencies and ease of living, trust-based governance, enhancing agricultural productivity and promoting the private sector as a co-partner in development is the focus of the government reforms.
• Cleaner balance sheets led to enhanced lending by financial institutions.
• Growth in credit offtake, increased private capex to usher virtuous investment cycle.
• Non-food credit offtake by Scheduled Commercial Banks growing in double digits since April 2022.
• Gross Non-Performing Assets (GNPA) ratio of SCBs has fallen to a seven-year low of 5.0
• Social sector expenditure (Centre and States combined) increases to Rs. 21.3 lakh crore in FY23 (BE) from Rs. 9.1 lakh crore in FY16.
• Central and State Government’s budgeted expenditure on health sector touched 2.1% of GDP in FY23 (BE) and 2.2% in FY22 (RE) against 1.6% in FY21.
• More than 220 crore COVID vaccine doses administered.
• Survey highlights the findings of the 2022 report of the UNDP on Multidimensional Poverty Index which says that 41.5 crore people exit poverty in India between 2005-06 and 2019-20.
• India declared Net Zero Pledge, to achieve net zero emissions goal by 2070.
• A mass movement LIFE– Life style for Environment launched.
• National Green Hydrogen Mission to enable India to be energy independent by 2047.
• Private investment in agriculture increases to 9.3% in 2020-21.
• Free foodgrains to about 81.4 crore beneficiaries under the National Food Security Act for one year.
• About 11.3 crore farmers were covered under PM KISAN in its April-July 2022-23 payment cycle.
• India stands at the forefront to promote millets through the International Year of Millets initiative.
• Investment of ₹47,500 crores under the PLI schemes in FY22– 106% of the designated target for the year.
• India’s e-commerce market is projected to grow at 18 per cent annually through 2025.
• Merchandise exports of US$ 332.8 billion for April-December 2022.
• India is the largest recipient of remittances globally receiving US$ 100 billion in 2022.
• PM GatiShakti National Master Plan creates comprehensive database for integrated planning and synchronised implementation across Ministries/ Departments.
• UPI-based transactions grew in value (121 per cent) and volume (115 per cent) terms, between 2019-2022, paving the way for its international adoption.