Why Economic Survey 2022-23 is so upbeat about India's prospects

The Economic Survey 2022-23, released today by the government, exudes optimism about the short-term as well as long-term prospects of the Indian economy. It has projected real GDP growth at 6% to 6.8% in FY24 and baseline real GDP growth at 6.5%.

The optimism about FY24 in the Economic Survey 2022-23 stems from a number of positives such as the rebound of private consumption given a boost to production activity; higher capital expenditure; near-universal vaccination coverage enabling people to spend on contact-based services, such as restaurants, hotels, shopping malls, and cinemas; the return of migrant workers to cities to work in construction sites leading to a significant decline in housing market inventory; the strengthening of the balance sheets of the corporates; a well-capitalised public sector banks ready to increase the credit supply; and the credit growth to the MSME sector.

Read More: The Economic Survey decoded


The Economic Survey also highlights the reasons why India's economy is poised for impressive growth even in longer term. Below are some of those reasons:
1. Once the global shocks of the pandemic and Russian-Ukraine conflict resulting in spike of commodity crises fade away, Indian economy is poised to grow faster in the coming decade.

2. With improved balance sheets of the banking, non-banking and corporate sectors, a fresh credit cycle has begun as is evident from double digit growth in bank credit over the past months.

3. The economy has started benefiting from the efficiency gains resulting from greater formalisation, higher financial inclusion and economic opportunities created by digital technology-based economic reforms.

4. India’s growth outlook seems better than in the pre-pandemic years and it is prepared to grow at its potential in the medium term.

5. Strong medium-term growth magnets will aid India’s economic growth.

6. Various reforms undertaken between 2014-2022 have strengthened the Indian economy.

7. Emphasis of reforms has been on enhancing the ease of living and doing business.