Economic Survey 2023: Govt not just enabler, but partner to economic growth as well, says CEA Dr Nageswaran

The International Monetary Fund (IMF) on Tuesday released its latest projections on world economic growth, just a couple of hours before Finance Minister Nirmala Sitharaman tabled the Economic Survey 2023. IMF predicted that India is expected to grow at 6.8 per cent again in the financial year 2024 and the chief economic advisor (CEA) said that the government expects the predictions of the IMF to come through.

“We expect the predictions of the IMF to come through. The government here is not just the enabler but a partner to economic growth as well,” said CEA,  Dr  A Nageswaran, while addressing the press after the Economic Survey is tabled on Tuesday.

IMF, in its World Economic Outlook Update, has maintained India's GDP forecast for current FY at 6.8%, next FY at 6.1% and for 2024-25 at 6.8%

India's economy is poised to do better in the remainder of this decade

- Chief Economic Advisor V . Anantha Nageswaran #EconomicSurvey pic.twitter.com/u6nNGoSNcY

— PIB India (@PIB_India) January 31, 2023

The survey highlighted that the Indian economy is staging a broad-based recovery across sectors, positioning to ascend to the pre-pandemic growth path in FY23. India's GDP growth is expected to remain robust in FY24. GDP forecast for FY24 to be in the range of 6-6.8  per cent.

According to the Economic Survey, the reforms were undertaken before 2014 primarily catered to product and capital market space. They were necessary and continued post-2014 as well. The government, however, imparted a new dimension to these reforms in the last eight years. With an underlying emphasis on enhancing the ease of living and doing business and improving economic efficiency, the reforms are well placed to lift the economy’s potential growth.

“Even as a crisis was being addressed, economic reforms were pursued and when underlined conditions turned favorable, the effects of reforms show through. That is exactly what has been reflected in the IMF forecast. That’s what we expect in the medium term as well,” added CEA during his address.

In the medium-term outlook, India is expected to outperform once the global shocks of the pandemic and Russian-Ukraine conflict resulting in a spike of commodity crises fade away, mentioned the survey.