Economic Survey 2024: Here's What Experts Say on India's Annual Report Card

The Economic Survey was tabled by Finance Minister Nirmala Sitharaman in Parliament today as the budget session kicked off. The much-awaited union budget will be presented tomorrow. 

The survey highlights that the central bank’s measures helped curtail retail inflation to 5.4 percent in FY24. Similarly, India's real GDP increased by 8.2 percent in FY24, surpassing the 8 percent threshold in three of the four quarters of the year. 

Here’s how industry experts have reacted to the Economic Survey: 

“The Chief Economic Advisor has sounded a cautious note by projecting a growth rate of 6.5-7.0 per cent for FY25, highlighting the global uncertainties and domestic challenges. The Economic Survey has proposed a compact between the central and state governments, corporate sector, and academia to overcome the unprecedented economic scenario,” says Ranen Banerjee, Partner and Leader Economic Advisory, PwC India, based on The Economic Survey 2024. 

Read: Budget 2024: Economic Survey Expected to Give Clarity on India's Growth Story

Banerjee says that the survey has nudged academia to provide the necessary skills and knowledge for IP creation. There is also a hint at lowering our emphasis on manufacturing and adopting the agricultural sector as a generator of jobs, which comes from the statement that our choices cannot be binary, adds Banerjee. 

Emphasising the role of the private sector, the survey says, “It is worth reiterating that job creation happens mainly in the private sector.” Since the private sector creates the majority of jobs and state governments are in charge of many (but not all) of the issues influencing economic growth, job creation, productivity, and the actions to be taken therein, the survey advocates a tripartite agreement between the private sector, the center, and state governments to meet the higher and rising aspirations of Indians and finish the journey to Viksit Bharat by 2047. 

"The Economic Survey implicitly stresses that in the medium term, growth needs to be supported by the private corporate sector as well as the state governments. Managing inflation, on the other hand, is not just the prerogative of the RBI and its MPC and would require active intervention by the Centre, especially in the arena of food price management,” says Aditi Nayar, Chief Economist and Head, Research & Outreach, ICRA Limited. 

The survey adds that there has been a decrease in youth unemployment from 17.8 per cent to 10 per cent between 2017 and 2022. “The unemployment rate has decreased through the years, accompanied by increased participation among youth and females. It is good to see that rural India has played a significant role in boosting female participation, contributing to a notable increase in women transitioning to self-employment,” says Dr. Rumki Majumdar, economist, Deloitte India. 

The survey mentions that artificial intelligence has the potential to disrupt employment. On that note, Majumdar says, “Keeping up with the momentum will be an important focus for the government as the accelerated growth of AI, specifically GenAI, is poised to revolutionize the nature of work and skills.” 

The survey has also added that the absence of timely data on job creation in various sectors prevents an objective analysis of India's labor market. Nilaya Varma, Co-Founder and CEO at Primus Partners, says, "The recent economic survey shows a robust 8.2 per cent growth rate, bolstered by the political stability following Prime Minister Narendra Modi's re-election. However, it highlights a significant issue: the lack of timely and detailed job creation data, which hampers accurate job market analysis. Despite this, job growth in trade and services underscores the need for a sustainable employment market and a shift from agriculture to manufacturing.”