Economic research 2023: these are the drivers of economic growth

The economic survey, submitted to parliament by Finance Minister Nirmala Sitharaman on Tuesday, highlighted India’s economic resilience and stated that the country is close to recovering from the pandemic. In addition to predicting India’s economic growth for the next fiscal year, the study also presented the drivers of growth in the coming years. It also said that the current account deficit (CAD) should be closely monitored. According to the economic survey, the Production Linked Incentive (PLI) scheme, PM Gati Shakti and National Logistics Policy are expected to play a major role in improving India’s cost and export competitiveness in the coming years.

Also read | India’s GDP growth slows to 6-6.8%

“Growth is expected to be brisk in FY24 as a strong credit payoff, and the capital investment cycle is expected to unfold in India with the strengthening of corporate and banking sector balance sheets,” the survey said.

“Further support for economic growth will come from the expansion of public digital platforms and pioneering measures such as Prime Minister GatiShakti, the national logistics policy and manufacturing-related incentive schemes to boost manufacturing output,” it added.

The pre-Budget survey found that India’s growth in FY23 was mainly driven by private consumption and capital formation, which helped generate employment.

It also said that the Emergency Credit Linked Guarantee Scheme protected India’s micro, small and medium-sized enterprises from financial hardship, with their rapid recovery supported by “remarkably high” credit growth. It was reflected in the rise in goods and services taxes paid by the units, according to the economic survey.

“Growth of credit to micro, small and medium-sized enterprises has been remarkably high, averaging more than 30.6 percent in January-November 2022, supported by the expanded Emergency Credit Linked Guarantee Scheme (ECLGS) of the Union Government” .

India has more than six crore micro, small and medium enterprises employing nearly 12 crore workers in various sectors and industries while contributing nearly 35 percent to the country’s gross domestic product (GDP).