Economic Survey: India's GDP expected to grow at 6.5% in FY 2023-24, CEA Nageswaran

India has already become the world's fifth largest economy in the 75th year of Independence and will reach the USD 3.5 trillion mark by end-March, said the Economic Survey tabled in Parliament on Tuesday.

In real terms, the economy is expected to grow at 7 per cent for the year ending March 2023. This follows an 8.7 per cent growth in the previous financial year.
 

Software exports stayed relatively resilient during the pandemic as well as amid current geopolitical uncertainties, the Economic Survey noted on Tuesday but drew attention to a Nasscom review which has indicated that technology spending during FY23 is likely to see a relatively muted growth due to expected global slowdown.

India's massive digital infrastructure played a crucial role in driving technology adoption, with public digital platforms becoming the bedrock of the country's digital advantage, said the Economic Survey tabled in Parliament.
 

Prime Minister Narendra Modi on Tuesday said the Economic Survey 2022-23 presents a comprehensive analysis of India's growth trajectory, including the global optimism towards the country.

Modi tweeted, "The Economic Survey presents a comprehensive analysis of India's growth trajectory including the global optimism towards our nation, focus on infra, growth in agriculture, industries and emphasis on futuristic sectors."

The Economic Survey presents a comprehensive analysis of India's growth trajectory including the global optimism towards our nation, focus on infra, growth in agriculture, industries and emphasis on futuristic sectors. https://t.co/2PpKzCgdtg

— Narendra Modi (@narendramodi)

Union Home Minister Amit Shah on Tuesday hailed the Economic Survey 2023 and said "seasoned captain" Prime Minister Narendra Modi has smoothly navigated the economy through the "rocky waters" of the Covid pandemic. 

#EconomicSurvey2023 reaffirms that a seasoned captain PM @narendramodi has smoothly navigated the economy through the rocky waters of the pandemic. When the world is suffering a slowdown, growth and optimism in all sectors show that India is set to emerge as a global superpower.

— Amit Shah (@AmitShah)

The work demand under the MGNREGS hovered around the pre-pandemic level between July to November 2022, the Economic Survey released on Tuesday said, attributing it to the "normalisation of the rural economy" and "swift recovery from Covid-induced slowdown".

According to the Economic Survey, which was tabled in Parliament by Finance Minister Nirmala Sitharaman, in the current financial year, 6.49 crore households demanded employment under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) till January 24.
 

Applauding the Railways' efforts for recovering in both the passenger and freight segments post the Covid pandemic, the Economic Survey for 2022-23 has credited the government for substantial increase in funds that has allowed the national transporter to augment infrastructure at a fast pace.
 

There has been a steady decline in the school dropout rate and increase in enrolment both in school and higher education, the Economic Survey for 2022-23 tabled in Parliament on Tuesday showed.

The gender parity has also improved in this financial year, the survey, tabled by Finance Minister Nirmala Sitharaman, stated. 

"The Gross Enrolment Ratios (GER) in the primary-enrolment in Class 1 to 5 as a percentage of the population in age six to 10 years  for girls as well as boys has improved during the financial year (FY)," . 

This improvement has "reversed the declining trends between FY-17 and FY-19", it stated, adding that "the GER in upper-primary (enrolment in class 6 to 8 as a per cent of the population in age 11-13 years), which was stagnant between FY-17 and FY-19, improved in FY-22". 
 

Technology used to ensure delivery of benefits like direct benefit transfer (DBT) to citizens needs to be further harnessed for achieving sustainable development goals (SDGs), the Economic Survey 2022-23 said.

The survey tabled in the Parliament on Tuesday stated history suggests that when different aspects of human development like education, skill, employment, health, and rural development are dovetailed with technology, all-round revolutionary innovation resulting in technology-led growth and prosperity follows.
 

Amid expectations of tax relief for middle class in the Budget, Economic Survey on Tuesday suggested that the government should follow the path of fiscal prudence as it will benefit all sections of society by keeping interest rates low.

The Survey, authored by a team led by Chief Economic Advisor V Anantha Nageswaran, argued that fiscal discipline will ensure significant fiscal space for policy action in uncertain times.

"As India's economic recovery advances, amidst the continuing global uncertainties and risks, the fiscal glide path illuminates the path for fiscal policy. That will ensure more significant fiscal space for policy action in uncertain times.

"Further, in reality, fiscal discipline translates into a fiscal stimulus for all sections of the economy through lower interest rates," the Economic Survey 2022-23 said.

Benefits of the production-linked incentive (PLI) scheme for as many as 14 sectors will help make domestic manufacturers globally competitive, attract investment in cutting-edge technology and make India an integral part of the global value chain, the Economic Survey said on Tuesday.

The scheme will benefit the MSME ecosystem in the country, it said.

It informed that as of December 31, 2022, 717 applications have been approved under 14 schemes and over 100 MSMEs are among the PLI beneficiaries in sectors such as bulk drugs, medical devices, telecom, white goods and food processing.

India's coal sector is likely to grow at 6-7 per cent per year to reach production level of 1.5 billion tonne by 2030 and this rise in output is expected to replace imports and increase exports, the Economic Survey said on Tuesday.
 

The gross tax revenues have touched 65 per cent of the Budget estimates at Rs 17.81 lakh crore during the first eight months of the current fiscal till November, propelled by corporate and personal income tax mop-up, according to the Economic Survey 2022-23 presented in Parliament on Tuesday.

The survey, authored by Chief Economic Advisor V Anantha Nageswaran, said the 'substantial reforms' in India's taxation ecosystem post-2014 and policy reforms have removed the distortionary incentives from the economy.

Reforms like GST, reduction in corporate taxes, exemption of sovereign wealth funds and pension funds from taxes, and removing Dividend Distribution tax have reduced the tax burden on individuals and businesses.
 

The Chief Economic Advisor (CEA) Dr V Anantha Nageswaran addressed a press conference after the Economic Survey 2023 was tabled on Tuesday in the parliament. The Economic Survey document is created by the Economic Division of the Department of Economic Affairs in the Ministry of Finance and developed under the observation of the Chief Economic Advisor.

The documents provided crucial data about the state of the economy and a lot of indicators for the current fiscal year 2022-2023 and the outlook for the next fiscal. The Economic Survey was presented a day before the presentation of the Union Budget. READ THE TOP 5 FOCUS POINTS HERE.

The Chief Economic Advisor Nageswaran said that the Indian economy is expected to grow at 6.5% in 2023-24, the range is 6.0% - 6.8%.

Chief Economic Advisor advised in order to ensure the potential GDP growth of India that it does not stop at 6.5% - 7.0%, even if global growth and export prospects remain moderate. Here is what the Economic Survey recommends:- 

• Administrative reforms & enforcement of contracts
• Dismantling LIC- License, Inspection & Compliance
• Harnessing Nari Shakti
• Education and Skilling
• Creating a vibrant MSME Sector 
• Affordable, reliable and viable power supply
• Energy security & energy transition
   

During his presentation on the Economic Survey 2022-23, the Chief Economic Advisor said that India is well ahead of its targets for renewable energy mix.

CEA said that Private investment in 10 sectors in the first half of 2022-23 is higher than what it was in the first half of 2021-22, noting that industry and services sectors are registering steady growth

CEA Nageswaran said that Credit growth is picking up across sectors, credit to MSMEs has grown at 30% since January 2022, NPAs in NBFCs are lower than what it was 15 months ago

CEA stated that reforms for Micro & small business have yielded results. "Redefinition of MSMEs and ECGLS have enabled the MSME sector to remain in good health, evidence is the GST paid by MSMEs"

CEA stated that the Liberalized norms for foreign investment have led to a structural shift, it has gone up from 2.2% to 2.6% as a proportion of GDP.

At the Economic Survey briefing, CEA said that the Urban unemployment ratio has come down to 7%, and worker population ratio has picked up to become 45%. As private investment begins to pick in and as the construction sector comes back to life, the employment scenario will become as it did in the 1st decade.

CEA Nageswaran said, "Tax cuts of 2019 played a big role in enabling the private sector to clean up balance sheets and consider investing, it also paved way for the Production Linked Incentive scheme to be implemented, PLI is ensuring that India creates a global scale in manufacturing for export".

Chief Economic Advisor shed light on the big tent that accommodates all the quality of life and government intervention.

He said that " Interventions made by the government in strengthening social infrastructure have been substantial, outlays have become outcomes. The government has been spending more for a better quality of life, leading to improved outcomes such as reduced school dropout rate, and better pupil-to-teacher ratio.

He further said, "Wide-ranging efforts have been taken by the government for ensuring quality health, India's COVID-19 vaccination programme has been instrumental in facilitating our economic recovery process as well. Due to government interventions and health insurance programmes, a family which used to spend nearly 2/3rds of health expenditure on its own is now spending only 48%"

Chief Economic Advisor detailed the formalisation and inclusions of the digital public infrastructure.  'Phase 1 reforms in digital public infrastructure have set the stage for new-age reforms which will ensure that hitherto-neglected segments of society such as low-income households and microbusinesses get fair shot at accessing national and international markets,' said CEA 

He added, "India's improved balance sheets and digital infrastructure together will add anywhere between 50 - 100 basis points to India's potential GDP growth, which is what we were missing in the second decade of the millennium".

At the briefing of the Economic survey, Chief Economic Advisor said that there has been significant growth in critical physical infrastructure during 2011 - 2020. 'PM Gati Shakti is about reducing info asymmetries and ensuring that govt. projects are executed without time or cost overruns'

Chief Economic Advisor said, 'Quality of public expenditure has gone up, govt. has become more transparent with budget deficit numbers, there is increased transparency in public procurement; various such dimensions have led to improved expenditure management'

Chief Economic Advisor said, 'Insolvency and Bankruptcy Code which ensures borrower payment culture, RERA which ensures trust between developers and buyers, decriminalization of offences under the Companies Act and such other initiatives have strengthened a trust-based governance model".

'Share of private sector investment in agriculture has reached a high level, facilitated by various government initiatives. The sector is no longer about being a primary sector, it has tremendous export potential as well,' observes Chief Economic Advisor
 

The Economic Survey 2022-23 points out that the story of reforms in the last eight years strikes a parallel to the reforms undertaken during 1998 - 2002. Chief Economic Advisor said that the lagged effect of reforms will show through, the full effect of reforms could not be reflected in data in past years due to successive one-off shocks 

Chief Economic Advisor Nageswaran said that the philosophy of economic management revolves around making it easier for people and businesses to pursue their economic activities, leading to enhanced potential for higher growth. It's not just about the government being an enabler, but a partner. 

IMF, in its World Economic Outlook Update, has maintained India's GDP forecast for the current FY at 6.8%, next FY at 6.1% & for 2024-25 at 6.8%. India's economy is poised to do better in the remainder of this decade, said CEA V Anantha Nageswaran on Economic Survey 2023

In the presentation on Economic Survey, Chief Economic Advisor observes that the reforms of the last eight years spanning multiple dimensions including digital, social and physical infrastructure were happening even as banking cleanup was going on.

'The leverage ratio in the corporate sector went very sharply in the first decade of millenium, the second decade was thus a payback time, excessive credit growth had to be adjusted for in the second decade, balance sheets now have been repaired, and credit growth is picking up. Despite global headwinds, industrial production expanded during FY23, backed by sustained demand conditions. The growth in bank credit has kept pace with industrial growth, with a sequential surge evident since January 2022, said Chief Economic Advisor

Chief Economic Advisor (CEA) Dr V Anantha Nageswaran presents Economic Survey 2023. The Economic Survey document, prepared by the Economic Division of the Department of Economic Affairs in the Ministry of Finance and formulated under the supervision of the CEA V Anantha Nageswaran, will give insights into the state of the economy and various indicators in the current financial year 2022-23 (April-March) and outlook for the next year.

The Economic Survey says widening of India's Current Account Deficit (CAD) may continue.

Finance Minister Nirmala Sitharaman tabled Economic Survey in Lok Sabha- India poised to grow at 6-6.8% for the fiscal year 2023-24. The Economic Survey was presented a day ahead of the presentation of the Union Budget on February 1.

According to the Economic Survey, India is the fast-growing economy in the world currently and is set to grow at 7 per cent in the year ending March.

According to the Economic Survey, Pradhan Mantri Garib Kalyan Yojana helped in ensuring food security.

The Economic Survey states that India's foreign exchange reserves comfortable and external debt is low.

Economic Survey reveals that rise in consumer prices has slowed considerably.

RBI projects headline inflation at 6.8% in FY23, which is outside its target range. The surge in the growth of exports in FY22 and the first half of FY23 induced a shift in the gears of the production processes from mild acceleration to cruise mode. Credit growth to the micro, small, and medium enterprises (msme) sector has been remarkably high, over 30.5 per cent, on average during Jan-Nov 2022, as per the Government of India

Economic survey 2022-23 projects a baseline GDP growth of 6.5. According to the government of India report, the Economic survey 2022-23 projects a baseline GDP growth of 6.5% in real terms in FY 24. The economy is expected to grow at 7% (in real terms) for the year ending March 2023, this follows an 8.7% growth in the previous financial year,

President Murmu said that Women's empowerment is an integral part of the development of this country. I am proud that the accomplishments of India's women on the International level are backed by my government.

She added, "Today we are seeing the success of the 'Beti Bachao, Beti Padhao' campaign. For the first time in the country, the number of women is more than men and the health of women has also improved more than before. My government has also ensured that there is no restriction for women in any work, in any field of work".

President Murmu said, "We have already started noticing the results of Made in India and Atmanirbar Bharat as Foreign companies, manufacturers, traders industrialists are coming to India".

As the Economic survey projects India's real gross domestic product (GDP) growth at 6-6.8% for the fiscal year 2023-24. Here are key details:-

• GDP Growth Projection of 6-6.8% in 2023-24
• 7.0% GDP growth estimate for the year ending March 2023 (After 8.7% in the previous fiscal)
• Credit growth to MSMEs at 30.5% in Jan-Nov 2022
• Govt Capex drove growth in the year ending March 2023
• RBI projects inflation at 6.8% in FY23, above the target range
• Housing market utilisation improving after migrant workers' return
• Surge in exports fast-tracked production
• Private consumption rebounding
•  Survey notes WTO's lower forecast for World GDP growth to 1.0% in 2023

The Economic survey projects India's real gross domestic product (GDP) growth at 6-6.8% for the fiscal year 2023-24.

Aam Aadmi Party and BRS on Tuesday boycotted President Droupadi Murmu's joint sitting address of the two Houses of Parliament.

Vice President Jagdeep Dhankar addressed the joint sitting of the Parliament. He said, "We have reached crore of beneficiaries with utmost transparency. For the first time India is celebrating the birth anniversary of Birsa Munda, acknowledging the tribal community".

President Murmu said that India follows the One Earth, One family motto. The government is emphasising that G20 is not restricted to only diplomacy but is an opportunity to show and introduce them to India's culture and tradition. "India holds the presidency of the G20 this year. Along with all member states of G20, India aims to find solutions to world problems".

President Murmu stated that today, the world has understood the tough stand taken against terrorism by India. This is the reason why today India's being heard seriously by the world on the issue of terrorism

President Droupadi Murmu said, "On one hand, India is taking its ancient knowledge of Yoga and Ayurveda to the world. On the other hand, it is enhancing its new identity as the 'pharmacy of the world'. We are developing our pilgrimage centres and historic heritage. India is becoming a major space power in the world as we have launched its first private satellite too".

President Murmu said, "India has become 3rd biggest aviation market globally. We have developed connectivity and soon we will have more than 250 districts connected to the highway. Jammu & Kashmir is being connected with Railway. We are focusing on green growth".

"As a result of new initiatives by my government, our defence exports have increased six times. I am proud that today the first indigenous aircraft carrier in the form of INS Vikrant has also joined our Navy", said President Murmu

President Murmu added, "My government has continuously laid unprecedented emphasis on innovation and entrepreneurship. Today our youth are showing the power of their innovation to the world. On one side Ayodhya Dham is being developed and on the other side, a modern Parliament is being constructed. While the redevelopment of Kedarnath Dham and development of Kashi Vishwanath Dham corridor and Mahakal project are completed, simultaneously medical colleges are being made in every district".

President Murmu stated, "Our heritage connects us to our roots and our development gives us the courage to touch the sky. That's why my government has chosen the path of strengthening heritage and giving priority to development. We are getting rid of all signs of colonisation. The national war memorial is now a sign of pride and bravery"

President Murmu hailed the government's development initiatives and for taking major decisions. "From surgical strike to strict action against terrorism, giving befitting response on LoC and LAC, to abrogating Article 370 in J&K and abolishing Triple Talaq, this government's identity has been that of a decisive one. Today, India's self-confidence is at its highest and the world is looking at her from a different perspective. India is providing solutions to the world. There is a stable, fearless and decisive government in the country that is working towards realising the big dreams".

President Droupadi Murmu said, "About 11 crore families have been connected with piped water supply in three years under the Jal Jeevan Mission. Poor families are getting the maximum benefit from this. My government has worked for every section of society without any discrimination. As a result of the efforts of my government in the last few years, many basic facilities have either reached 100% population or are very close to that target".

The benefit of a stable and decisive govt is being reaped by us against the biggest crisis in 100 years and in tackling the situation that arose after it", President added during the joint session of Parliament as Budget Session.

President Murmu's addresses the joint sitting of Lok Sabha & Rajya Sabha in the Central Hall of Parliament. "By 2047, we have to build a nation that will be connected to the pride of the past and which will have all the golden chapters of modernity. We have to build an India that will be 'Aatmanirbhar' and capable to fulfill its humanitarian duties. Sabka Sath Sabka Vikas has become the mantra of this new Aatmanirbhar Bharat. The world has changed its perspective towards India".

President Murmu was received by Prime Minister Modi, Vice President Jagdeep Dhankar, and Lok Sabha speaker Om Birla as they proceed towards the central hall for the inaugural address

President Droupadi Murmu is seen leaving Rashtrapati Bhavan and heading to Parliament with ceremonial escorts. She will address the joint sitting of Parliament with an inaugural address ahead of the economic survey presentation 

Prime Minister Narendra Modi addresses the media ahead of the Economic Survey presentation in the Parliament. "Budget Session begins today & at the beginning itself, credible voices from the world of economy, have brought in a positive message, a ray of hope & a beginning of enthusiasm. Today is important, President will address the joint session of the Parliament for the first time".

MoS Finance Pankaj Chaudhary said that the Economic Survey will be tabled by FM Sitharaman today. "The Union Budget 2023 will be brought keeping all sections of the society in mind and also the country's economy"

Ahead of the budget session scheduled to begin on January 31, top MPs from the Congress will not attend the joint address of the President, due to flight delays triggered by inclement weather, informed senior Congress leader Jairam Ramesh. He informed that Leader of Opposition (LoP) in Rajya Sabha and Congress president Mallikarjun Kharge and many other Congress MPs will not be able to attend the joint address of the President to both houses of parliament.       

Due to delayed flights from Srinagar airport on account of inclement weather conditions, Leader of Opposition in the Rajya Sabha, @kharge ji & many other Congress MPs will be unable to attend the President's address to both Houses of Parliament at 11am today.

— Jairam Ramesh (@Jairam_Ramesh)

Sensex down 325 points, currently at 59,175, and Nifty at 17,559, ahead of the presentation of the Economic Survey 2023 in Parliament.

Sensex down 325 points, currently at 59,175, and Nifty at 17,559, ahead of the presentation of the Economic Survey 2023 in Parliament.

— ANI (@ANI)

As the economic survey is set to be released shortly by Union Finance Minister Nirmala Sitharaman, International Monetary Fund (IMF) has projected that India to remain the fastest-growing major economy as it will account for half of the global growth. On Tuesday, the International Monetary Fund (IMF) published its World Economic Outlook for the month of January and projected that India has retained its GDP growth for 2022-23 and 2023-24at 6.8% and 6.1%, respectively. However, the growth is expected to lower from 6.8%, estimated for FY23 but will still retain its position of being the fastest-growing economy.

According to the IMF, the economy will slow down in 2024 but will subsequently pick up the pace. "India's growth is set to decline from 6.8% in 2022-23 to 6.1% in 2023-24 before picking up to 6.8% in 2024-25, with resilient domestic demand despite external headwinds," the IMF said in an update to its World Economic Outlook report. 

As per the projection, India will remain at a bright spot as along with China it will become a major engine of growth in 2023. India and China will contribute to half of the global growth this year, versus just a tenth for the US and euro area combined.

The Economic survey which will be tabled today in the Parliament is likely to forecast India's real gross domestic product (GDP) growth at 6-6.8% for the fiscal year 2023-24.

India's annual pre-budget economic survey is expected to show that the growth would be witnessed at 6.5% for 2023-24 under the baseline scenario. This would be the slowest growth in three years. Meanwhile, the nominal growth is likely to be forecast at 11% for 2023-24.

As per reports, the growth will remain strong in the financial year beginning April 1 in comparison to most global economies led by a pick up in lending by banks and improved capital sending by corporations.

Notably, the Economic Survey is a comprehensive document that provides a review of the Indian economy of the current financial year. The document summarises the performance of primary development projects and forecasts GDP growth and other important economic indicators for the next fiscal year. It will be tabled today in both Houses of Parliament by Union Finance Minister Nirmala Sitharaman, a day ahead of the presentation of the Union Budget on February 1.

India is making giant leaps in the space sector since the central government established IN-SPACe (the Indian National Space Promotion and Authorisation Centre), the autonomous agency under the Department of Space, which has allowed the participation of private companies in the space industry. Also, ISRO may need increased funding considering the ambitious missions that are awaiting fruition. Given the same, it is expected that the 2023 Union Budget may focus on the development of the research and space sector.

The COVID-19 pandemic kept India's health infrastructure engaged for the better part of the last two years, and it led to the exposure of existing shortcomings in the country's health system. It is expected that the central government will be motivated to build a strong medical infrastructure. READ THE FULL STORY.

Ahead of the presentation of the Union Budget for the fiscal year 2023-24, citizens across India have put forward their expectations. The Union Budget will be presented in paperless form by Finance Minister Nirmala Sitharaman on the floor of the Parliament on Wednesday which will also comprise of Railway Budget.

A passenger at the Patna junction shared his idea and expectations stating that the railway fares need to be controlled. "The Railways should see that train fares don't go up. Also, the fare increases over the last few years should be controlled and the rate of platform tickets has been reduced from Rs 50 to Rs 10, we want it to be reduced further," said MD Sanjay, reported ANI. Some passengers expressed their excitement and enthusiasm over Bharat trains and the Bullet Train project. Another passenger at the Patna junction station hoped that the government introduce the Bullet Train project soon and conceive more such projects in the coming years.

Whereas, students have urged that the Railways should run separate trains to make it easier for them to appear for outstation exams as it's difficult to book seats in regular passenger trains. Women passengers stated that the Railway authorities should strive more to ensure their safety. Passengers further said the Railway Budget should also focus on ensuring the provision of better food in trains. Meanwhile, railway passengers in the national capital, New Delhi, said they expect more budgetary funds to be allocated for passenger safety and cleanliness. READ THE FULL STORY.

The Economic Survey 2022-23 being tabled in Parliament and Chief Economic Advisor V Anantha Nageswaran's press conference will be live on Republic TV. It would also be telecast on Sansad TV. You can also live stream the Budget session and CEA's briefing on the Youtube channels of the Republic World and PIB India. Republicworld.com will cover the Budget Session 2023 live.

The Budget session will begin at 11 am on Tuesday (January 31) with President Droupadi Murmu's address. FM Sitharaman will table the Economic Survey 2022-23 shortly after that. Chief Economic Advisor (CEA) V Anantha Nageswaran will address a press conference at around 2 pm after the presentation of the Economic Survey in Parliament.

Economic Survey will be tabled in both Houses of the Parliament by Union Finance Minister Nirmala Sitharaman on January 31. The Economic Survey will be presented by the Union Finance Minister a day ahead of the presentation of the Union Budget on February 1. Economic Survey reviews the state of the Indian economy, and is prepared by the Economics Division of the Department of Economic Affairs under the guidance of the Chief Economic Advisor (CEA). The Department of Economic Affairs works under the Ministry of Finance. 

The Economic Survey was first presented in 1950-51 along with the Union Budget. However, it was soon de-linked from the Union Budget in the year 1964 in order to provide context for the Union Budget ahead of its presentation in Parliament. 

Following the presentation of the Economic Survey 2021-22 by Finance Minister Nirmala Sithraman in the Parliament, Chief Economic Adviser (CEA) Dr V Anantha Nageswaran will unveil the document to the public in a press conference on Tuesday, January 31.

Economic Survey

The Economic Survey is a comprehensive document that provides a review of the Indian economy of the current financial year. The document summarises the performance of primary development projects and forecasts GDP growth and other important economic indicators for the next fiscal year. The Economic Survey, tabled in both Lok Sabha and Rajya Sabha, gives a better understanding of the Union Budget by analysing the country’s economic situation and the areas that needs to be focussed on in the next financial year. READ THE FULL STORY.

India has emerged as one of the largest markets in the digital sector and the Centre would like to double down on its development, especially after its role in making the nation home to the third-largest number of startups. India also received immense praise for its digital initiatives at the World Economic Forum in Davos for its advancement in the digital space. Last year, the Ministry of Electronics and Information Technology (MeitY) received Rs 10,676.18 crore, a 67.13% jump from the previous year (Rs 6,388 crore). Given the same, it is expected that this year's upcoming budget may also have focus on strengthening the digital sector of the country.

Union Budget 2023 will be PM Modi led-government’s full Budget as the government next in 2024 will present an “Interim Budget” before the completion of its term. According to the experts, this year the central government is likely to focus on sectors like infrastructure, renewable energy, real estate and capital goods, among others in the Budget.

Notably, the upcoming will play an important role in the next year's General elections, it is speculated that Nirmala Sitharaman is under a lot of pressure and therefore, might avoid populist measures and will focus on strengthening the economic situation of the country.

Nearly one-fourth of the Defence Ministry's budget goes into paying salaries and pensions of armed forces personnel. One of the biggest developments in India's defence sector this year is the Centre's decision to implement One Rank One Pension (OROP).   

The implementation of OROP will claim a significant portion of funds from the defence budget. 

Additionally, the focus on indigenisation of weapons and other defence equipment is expected to enable a boost in the defence budget. 

India inducted numerous defence assets in its tri-services in FY 2022 under the Atmanirbhar Bharat campaign. Hindustan Aeronautics Limited, Defence Research and Development Organisation (DRDO), Mazagon Dock Limited, Bharat Electronics and Cochin Shipyard Limited are some of the notable producers of indigenous defence assets. Also, the 12th edition of the Defence Exhibition called ‘DefExpo-2022' held in October in Gujarat’s Gandhinagar can be considered an indicator of the government’s plans for the defence sector.

According to data from the Indian Defence Ministry, the government has increased the procurement of domestic defence products from 50% to 68% in recent years. Estimates suggest that the figure is expected to rise to 75 to 80% this year. READ THE FULL STORY.

In keeping with its commitment to fight the future wars with Indigenous Solutions, #IndianArmy invites Indian Defence Industry to offer critical defence equipment for Emergency Procurement. #IndianArmy #InStrideWithTheFuture pic.twitter.com/eAHYEM3cp7

— ADG PI - INDIAN ARMY (@adgpi)

The Budget Session with the PM Modi-led government's heavy financial agenda is set to be held in two parts. The session will begin with President Droupadi Murmu's customary address to the joint sitting of both Houses - Lok Sabha and Rajya Sabha - in the Central Hall of Parliament. Following this, the Economic Survey will be tabled. The first part of the session is scheduled to be held from January 31 till February 13.

The second part of the session will begin on March 13 and will culminate on April 6. During this, demands from individual departments and ministries for grants will be up for discussion. Additionally, the discussions will also include Performance and Outcome Budgets, and Annual Reports by the respective ministries and departments. 

Since the 2024 election is near, this year's budget may also focus on investments in infrastructure development, according to Avinash G. Singh, senior vice president of the financial firm Aranca. "We believe the government will present a growth-focused spending plan, maintaining the impetus on investments in infrastructure development." We, therefore, see the road, railway, and urban infrastructure sectors to see meaningful allocation as the significant beneficiaries of the budget. In addition, we expect healthcare, education, and rural housing to be the other major sectors likely to benefit from the increased allocation of funds," he said.

After India faced a slew of challenges, from the pandemic to the energy and supply chain crises, the country's startup sector is also hopeful for some support from the upcoming budget. "For the startups, the winter came in early. The equity funding dried up, forcing startups to look at cutting costs (read: employee costs) to extend their runway. The investors did not totally disappear; they altered their approach to offering venture debt. Despite that, startups battled the "funding crunch," said Ethique Advisory founder and business coach Ratish Pandey, who added that "one is hopeful that the government will continue the announced support packages for another year to keep the momentum going."

Also, the upcoming budget is likely to have more focus on granting the real estate sector industry status and rationalising the GST rates for brokerage services, etc. "Consumers are facing a bit of pressure due to rising interest rates and would like some relief." The industry is showing signs of life, but growth is uneven and unpredictable due to disruptions. "We would like to get more support to keep investing in sector growth," said Ashish Kukreja, the founder and CEO of Homesfy. READ THE FULL STORY.

Ahead of the budget announcement, the country’s defence sector is expected to get a big boost in fund allocation. According to data from the Indian Ministry of Defence, the government has increased the procurement of indigenous defence products from 50% to 68% in recent years. Estimates suggest that the figure is expected to rise to 75 to 80% in FY 2023.  
 

Finance Minister Nirmala Sitharaman will be presenting the Union Budget 2023-24 in Parliament on February 1, Wednesday and the first session is expected to continue till February 10. It will be the fifth budget of the Modi 2.0 government and also for Sitharaman. It will also be the last full budget before the general elections slated in April-May 2024. The Economic Survey 2022-2023 will be tabled in both Houses of the Parliament by Sitharaman.

India entered its 'Amrit Kaal' when it marked 75 years of Independence in 2022. The 'kaal' or the period refers to the time in the run-off to the nation's centenary independence in 1947. These 25 years are being looked on as India's opportunity to show its potential and strength on from the local to the global stage. Therefore, the budget last year also reflected provisions keeping India's 'Amrit Kaal' in time. READ THE FULL STORY.

Finance Minister Nirmala Sitharaman will table the Economic Survey on January 31. The Economic Survey is regarded as a crucial document that provides a review of the economy of the current financial year, summarises the performance of primary development projects, and forecasts GDP growth and other important economic indicators for the next fiscal year. The Survey is prepared under the guidance of the CEA. READ THE FULL STORY.

India has been eyeing the $5 trillion economy mark over the last few years. It was in 2019 when Prime Minister Narendra Modi set a goal for the country to achieve the target by 2024-25. A pandemic and a European war later, it has become imperative for the world's largest democracy to take strong steps if it seeks to reach its goal and eventually realise its desire to become a developed nation by 2047 when India will mark 100 years of its independence from British rule. READ THE FULL STORY.

Senior Congress leader and former Union finance minister P Chidambaram on Monday said that the BJP-led central government in its upcoming budget should focus on addressing issues like the impact of the global slowdown on economic growth, falling exports, increase in the current account deficit (CAD) and mounting total government debt.

He told PTI that the Union Budget should also focus on the danger of falling consumption leading to lower standards of living due to high unemployment rate, layoffs and inflation.

The CPI(M) has said that it will raise the issue of allegations levelled by Hindenburg Research against the Adani group during the Budget session of Parliament along with other opposition parties and demanded a high-level probe monitored on a day-to-day basis by the Supreme Court.

In a statement on Monday, after the Central Committee of the party met in Kolkata on January 28-29, the party also hit out at the Centre over alleged interference in the appointment of judges to the high courts and the Supreme Court and the actions of governors and Lieutenant Governors in non-BJP ruled states and UTs.
 

Finance Minister Nirmala Sitharaman will present the last full-fledged Union Budget of the Modi government before the 2024 Lok Sabha elections on February 1.

The Budget session of Parliament begins on Tuesday with the maiden address of President Droupadi Murmu to the joint sitting of both Houses.

While the government's priority will be to seek approval on the Motion of Thanks to the President's Address and the Finance Bill, the Opposition is raring to corner it on a range of issues, including the Adani-Hindenburg row, a nationwide caste-based economic census and the women's reservation bill.

Finance Minister Nirmala Sitharaman will present the last full-fledged Union Budget of the Modi government before the 2024 Lok Sabha elections on February 1.

The Economic Survey will be tabled on Tuesday after the President's address.

The government plans to bring around 36 bills - including four related to the budgetary exercise - during the session.

The session will have 27 sittings and will continue till April 6 with a month-long recess to examine the budget papers.

The first part of the session will conclude on February 14. Parliament will reconvene on March 12 for the second part of the Budget Session.
 

With Union Finance Minister Nirmala Sitharaman getting ready to present the last full budget of the Modi 2.0 government, expectations are high that she will meet the demands of all stakeholders, including the common man who is reeling under the price rise.

The finance minister has held several rounds of discussions with various stakeholders, and final touches are being given to the Union Budget for 2023-24 which will be unveiled in the Lok Sabha on February 1.

"The Budget to be announced will be an exercise of managing several objectives: movement to fiscal prudence, stimulating growth without accompanying inflation, garnering more resources through non-tax measures and providing sops where necessary.

"As all these objectives would run in different directions, the FM will exercise considerable dexterity to move ahead decisively on all counts," said Madan Sabnavis, Chief Economist, Bank of Baroda.

Since this will be the last full Budget before the 2024 Lok Sabha elections, Sitharaman may also announce income tax relief for salary earners, and people in small businesses.

TIOL Knowledge Foundation Chairman Shailendra Kumar said the government should enhance various deductions limits.

"Given the precipitous drop in the national gross savings from 37 per cent to 27 per cent, the perimeter of Section 80C of the I-T Act needs to be expanded to Rs 2.5 lakh. This will put more money in the hands of the government to bankroll the infrastructure sector or higher capex," he said.