"Mature take on Indian economy," FICCI President hails Economic Survey

New Delhi [India], July 22 : The industry body FICCI has hailed the Economic Survey 2023-24 presented in parliament on Monday by Union Minister of Finance and Corporate Affairs Nirmala Sitharaman. In a response to the survey, Dr Anish Shah, President, FICCI said that it is a mature take by the government on the outlook of the economy.
FICCI President said, "We see a very mature take on the outlook for the Indian economy presented today as part of the Economic Survey. While a projected growth rate of 6.5-7 per cent for the fiscal 2024-25 may appear a bit conservative, we feel that for a country of the size of India which has been growing at a fast pace, this growth is encouraging."
"Having said that, let me also add that with many path-breaking reforms such as GST and IBC having now matured, it is time that we look at the next leap on the reforms trajectory that would prepare India for achieving even higher growth, Shah asserted.
The Economic Survey has highlighted six priority areas for India's future development. These include boosting private investments, strengthening MSMEs, removing impediments to the growth of the agriculture sector, having a clear framework for green transition financing, bridging the education-employment gap through greater focus on skilling, and strengthening state capacity and capability.
The FICCI President further asserted that the industry body fully agrees with the identified areas by the Economic Survey.
"We are hopeful that the Union Budget that will be presented tomorrow will offer specific details on how the government will engage all stakeholders to drive these priorities forward," added Shah.
He said that the Economic Survey has raised several important issues along with a few other issues that need immediate attention.
"The survey has suggested that a higher level of private sector financing and resource mobilisation from new sources will be crucial for India to build quality infrastructure. This would not only require policy and institutional support from the central government, but state and local governments would have to play an equally important role, he underscored.
He further highlighted that the private capital formation after good growth in the last three years may turn slightly more cautious because of fears of cheaper imports from countries that have excess capacity.
Shah also pointed out that there is a need to explore whether India's inflation targeting framework should target the inflation rate excluding food.
As per the Economic Survey 2023-24 tabled by Finance Minister, the Indian economy is on a strong wicket and stable footing, demonstrating resilience in the face of geopolitical challenges.
The Indian economy has consolidated its post-Covid recovery with policymakers - fiscal and monetary - ensuring economic and financial stability, the 476-page Economic Survey document said in its initial remarks. It asserted that the economy continues to expand.
However, indicating global volatility, the Survey document asserted that change is the only constant for a country with high growth aspirations.
Further, it noted that the Indian economy has recovered and expanded in an orderly fashion post-pandemic and the real Gross Domestic Product (GDP) in 2023-24 was 20 per cent higher than its level in pre-pandemic 2019-20.