Union Budget 2024 | Economic Survey on global headwinds and the Indian economy

FM Sitharaman on Monday presented the Economic Survey ahead of the Union Budget. Here's what the Economic Survey says on the Indian economy vis-a-vis the global economy.

Finance Minister Nirmala Sitharaman on Monday presented the Economic Survey, a comprehensive document on the state of the Indian economy. The Economic Survey is tabled ahead of the Union Budget, which will be presented on July 23.

Here's what the Economic Survey says on the Indian economy vis-a-vis the global economy:

The Survey highlights the Indian economy's stability amidst global headwinds and sticky inflation.

India's rank in the World Bank's Logistics Performance Index improved from 44th in 2018 to 38th in 2023 out of 139 countries.

India is adding more export destinations, indicating regional diversification of exports.

The moderation in merchandise imports and rising services exports have improved India's current account deficit, which narrowed to 0.7 per cent in FY24.

India's services exports grew by 4.9 per cent to $341.1 billion in FY24, with growth largely driven by IT/software services and 'other' business services.

India is the top remittance recipient country globally, with remittances reaching a milestone of $120 billion in 2023.

India witnessed positive net foreign portfolio investment inflows in FY24 supported by strong economic growth, a stable business environment, and increased investor confidence.

At the end of March 2024, India's forex reserves were sufficient to cover more than 10 months of its projected imports for FY25 and 98 per cent of its external debt.

India's external debt has been sustainable over the years, with the external debt to GDP ratio standing at 18.7 per cent at the end of March 2024.

Challenges such as slowing global GDP growth and an all-time rise in trade protectionism can pose a significant downside risk.

In this context, both the government and the private sector must focus on removing barriers and implementing steps to boost India's export competitiveness.

Union Budget 2024 | Making a record for any Finance Minister, Nirmala Sitharaman will be presenting her 7th Union Budget on July 23, 2024 under the Modi 3.0 government. While inflation has burnt a hole in the pockets of 'aam janata', will this Budget spell relief for Indians? Track the latest coverage, live news, in-depth opinions, and analysis only on Deccan Herald. Also follow us on WhatsApp, LinkedIn, X, Facebook, YouTube, and Instagram.