Govt Economic Review: FY24 GDP Growth Over 7%

Last Updated: 25 Jun 2024

Every year on the day before the Budget, the Economic Survey for the previous financial year is presented. This year the government has not presented the Economic Survey. It has probably done so because interim budget is being presented on 1st February, due to the General Elections. Instead, the government has come out with a report titled, Indian Economy – A review. This report too, like usual Economic Surveys, has been prepared by the Chief Economic Advisor of the Government. Instead of focusing on the previous year, this review focuses on the economic performance of the government in the past 10 years.

GDP growth rate in FY 24 projected at over 7%

The report projects that Indian economy will become a $ 5 trillion economy in the next 5 years. The report also says that India can become a $7 trillion economy by the year 2030. The report estimates GDP growth rate for FY 24 at over 7%. It identifies global economic slowdown and headwinds as major challenge for the Indian economy.

It focuses on the many structural reforms that the incumbent government has taken in the past 10 years. Support given to sectors such as MSME by the government has also been highlighted. India’s growth in the fintech sector has also been highlighted as an achievement. Increase in financial inclusion has been highlighted as a major economic achievement.

Low female participation in labor force a major challenge

Among the challenges that it has identified before the Indian economy is low female participation ratio in labor workforce. The current female participation ratio in labor force of India is around 40.7%. This is among the lowest female participation rates in the world. The GDP and GDP growth of a country is a function of the size of its labor force, its capital stock, and technological innovation. Lower female participation rate in the labor force of the country means lower size of labor force. If India has to increase the pace of its GDP growth rate further, its female participation rate in labor force should increase.