Economic Survey 2022-2023

Economic Survey 2022-2023

 

Main Examination General Studies- 2,3:

        Polity and Administration, Indian Economy, Economic Survey and Government Budget.

Why in News:

  • The Economic Survey of the country was presented in the Parliament on January 31 before the general budget to be presented on February 1 after the President's address.

Key Points:

  • The Economic Survey presented by the Finance Minister states that India's GDP will grow by 11% from the baseline value in the nominal term in the financial year 2023-24. At the same time, the Indian economy is estimated to be 6.5% in real terms.
  • In the financial year 2022, the country's economy has grown by 8.7%.
  • The Economic Survey states that India has sufficient foreign exchange reserves to finance current account deficit and rupee volatility.
  • India is the third largest economy in the world in terms of Purchasing Power Parity (PPP). At the same time, it is at number five in the exchange rate.
  • The Capex of the central government has increased by 63.4 in the April-November period of the current financial year.
  • According to the survey, retail inflation has come down below the tolerance band of RBI in the month of November after the steps taken by RBI. The Indian currency is performing better against the dollar than most of the world's currencies.
  • Under the target of halving poverty by 2030, more than 41 crore people have been lifted out of poverty during 2005-05 to 2019-21.
  • Under the target of halving poverty by the year 2030 (Sustainable Development Goal), more than 41 Crore people have come out of poverty during 2005-05 to 2019-21.
  • According to the Periodic Labor Force Survey, the urban unemployment rate for people aged 15 years and above has come down from 9.8 in September 2021 to 7.2 per cent a year later. Along with this, the Labor Force Participation Rate (LFPR) has also improved.
  • During this period the urban unemployment rate has reached the lowest level in the last four years.
  • FDI inflows in FY2022 were $21.3 billion, up 76 per cent from FY21.
  • Indian pharmaceutical exports have registered a growth of 24 per cent in FY2021. Cumulative FDI in Pharma sector to cross $20 billion mark by September 2022.
  • According to the Economic Survey, there has been a significant increase in government spending in the social sector. Expenditure in the social sector has increased to Rs 21.3 lakh crore in FY 2023 as compared to Rs 9.1 lakh crore in FY 2016.
  • By January 4, 2023, around 22 crore people had got benefits under the Ayushman Bharat scheme. Along with this, more than 1.54 lakh health and wellness centers are also being operated in the country.
  • Budgeted expenditure of central and state government on health sector to reach 2.1 per cent of GDP in FY2023 and 2.2 per cent in FY22, compared to 1.6 per cent in FY21, said the survey. Apart from this, more than 220 crore doses of Covid vaccine have been given.
  • The unemployment rate has come down from 5.8 per cent in 2018-19 to 4.2 per cent in 2020-21. The labor force participation of women in rural areas has increased. It has increased from 19.7 % in 2018-19 to 27.7 % in 2020-21
  • 28.5 crore unorganized workers have been registered on the e-Shram Portal. There was an increase in self-employment and a decline in the share of regular wage/salaried employees in 2020-21. The net average monthly subscribers added under EPFO has increased from 8.8 Lakh in April-November 2021 to 13.2 Lakh in April-November 2022.
  • By 2070, India has announced Net Zero Pledge to achieve net zero emission target. National Green Hydrogen Mission has been launched to make India energy independent by 2047.
  • Private investment in agriculture increased to 9.3% in 2020-21.
  • Free food grains have been given to about 81.4 crore beneficiaries for one year under the National Food Security Act. Around 11.3 crore farmers have been covered under PM Kisan in the April-July 2022-23 payment cycle.
  • India is at the forefront of promoting millets through the International Year of Millets initiative.
  • ₹47,500 crore investment under PLI schemes in FY22, which is 106% of the target set.
  • India's e-commerce market is expected to grow at a rate of 18 percent annually till 2025. Merchandise exports pegged at US$ 332.8 billion for April-December 2022. India is set to become the largest recipient of USD 100 billion globally in 2022.
  • Plan PM Gatishakti National Master creates a comprehensive database for integrated planning and synchronized implementation across Ministries/Departments. UPI based transactions are expected to grow by 121% in value and 115% in volume between 2019-2022.
  • The growth in direct tax collections for the April-November 2022 period remains intact.

What is Economic Survey:

  • The Economic Survey is an annual document brought out by the Ministry of Finance. It is an account of the economic progress and performance of the country in the last one year. All the main statistics related to the economy are presented in the Economic Survey. It gives a detailed description of key components of the economy such as inflation, infrastructure, agriculture and foreign exchange reserves.
  • Along with this, the economic survey tells about the economic challenges facing the country. It is prepared by the Department of Economic Affairs, Ministry of Finance, under the supervision of the Chief Economic Adviser.

History of Economic Survey:

  • The first Economic Survey of the country was presented in 1950-51. Before 1964 it used to be a part of the budget, but it was separated and started being released a day before the budget. Since then till now this tradition is going on.
  • It is divided into two parts. In the first part, a complete description of the present economic condition of the country is given. The second part focuses on various issues such as health, poverty, climate change and the Human Development Index.

Conclusion:

  • Indian Economy is making broad based reforms across all sectors, which is poised to grow further. The pandemic affected both the labor market and employment, but the labor market has now moved beyond pre-Covid conditions, both in rural and urban areas. This is clearly visible in the supply-side and demand-side employment data.

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Main Exam Questions:

What is Economic Survey? Write the important points of Economic Survey 2022-23.

 

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