The Economic Survey presented by Finance Minister Nirmala Sitharaman on Monday gives the public confidence on stable prices, but displays scary signs of a dull job market.
Reviewing the 2023-2024 trends of the country’s economy, the finance minister said that despite challenges posed mainly by global uncertainties on several fronts, India ensured price stability through proper policy interventions. However, India faces a persistent deficit of pulses and consequent price pressures, the survey warns.
At the same time, the finance minister, referring to the 2023-24 indications, stressed that uncertainties in the job market may continue as the advent of technologies, especially the tools embedded with artificial intelligence, will have a huge impact on the growth of opportunities for workers across all skill levels.
Domestic growth drivers supported economic growth in the financial year 2024 despite uncertain global economic performance, the economic review showed. This has also given confidence about a 6.5 to 7 percent growth in the country’s economy in the current financial year.
However, the projected growth will largely depend on the expected normal monsoon, moderating global prices of imports. Even as the Reserve Bank of India (RBI) projects a friendly inflation, the escalation in geopolitical conflicts and its impact may still influence the apex bank’s stance in its monetary policies going forward.
The government’s expectation of balancing its fiscal management is however largely supported by tax compliance and expenditure restraint, and digitization. As the financial sector undergoes critical transformation, it must brace for likely vulnerabilities originating globally or locally, the survey emphasised.
Going by the 2023-24 trend, India’s vibrant capital market, which is emerging as a key contributor to the country’s growth story, has almost proved that it is resistant and resilient to global geopolitical and economic turmoil. Similarly, the flow of foreign direct investment by the China plus one strategy is bound to increase, which will in turn strengthen India’s participation in the global supply chain substantially. It will also result in the rise of exports multifold.