THE ECONOMIC SURVEY FY 2022-23
KORAH AND KORAH, CHARTERED ACCOUNTANTS
INDIA’S PERFORMANCE IN FY 2022-23
Do not Skip! – The Disclaimer
- This presentation summarizes the important points from the Economic Survey of FY 2022-23 which was tabled by the Finance Minister, in a lucid manner.
- This presentation is not an offer, invitation, or solicitation of any kind. Utmost care has been taken while preparing this presentation, the views and opinion expressed are that of the writers.
- The readers are requested to kindly verify and check the facts before acting on them as this presentation is meant for general guidance and no responsibility for loss arising to any person acting or refraining from acting, as a result of any material contained in this presentation will be accepted by the Firm or its associates.
- It is recommended that professional and expert guidance or advice is to be taken based on the specific facts and circumstances. This presentation does not substitute the need to refer to the original pronouncements.
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The Real Figures!
- India to remain the fastest-growing major economy in the world.
- Recovering from the pandemic-induced contraction, the Russian-Ukraine conflict and inflation, Indian economy is staging a broad-based recovery across sectors.
- As of now, India is the 3rd largest economy in PPP (purchasing power parity) terms. PPPs are simply price relatives that show the ratio of the prices in different currencies for the same good/service.
- As per the World Economic Outlook released by the International Monetary Fund (IMF), growth in India is set to decline from 6.8% in the calendar year (CY) 2022 to 6.1% in CY 2023 before picking up to 6.8% in CY 2024.
- However, the Economic Survey 2022-23 projects the baseline GDP growth at 7% for the year ending 31st March 2023 and a decline to 6.5% in FY 2023-24
- The Reserve Bank of India (RBI) projects inflation at 6.8% in FY 2022-23, which is below its target range.
- Another growth driver of the Indian economy is the increased spend by the Government on capital expenditure, which increased by 63.4% in the first 8 months of FY 2022-23.
- Enhanced employment generation has been observed and the urban
unemployment rate has declined. Higher net registration numbers have been seen in Employee Provident Fund scheme.
- Credit to Micro, Small and Medium Enterprises (MSMEs) has grown by an average of around 30% since January 2022 and credit to large industry has been showing double-digit growth since October 2022.
- The Indian Pharmaceuticals industry plays a prominent role in the global pharmaceuticals industry. The cumulative FDI in the pharma sector crossed the $20 Billion mark by September 2022.
- The Economic Survey cautions that the challenge of the depreciating rupee, although better performing than most other currencies, persists with the likelihood of further increases in policy rates by the US Fed.
- There has been a surge in the growth of exports in Financial Year 2021-22 and the first half of Financial Year 2022-23. This has induced a shift in the gears of the production processes from mild acceleration to cruise mode.
- More than 220 crore COVID vaccine doses administered as on 6th January, 2023.
- The services sector is expected to grow at 9.1% in Financial Year 2022-23, against 8.4% in Financial Year 2021-22.
- Hotel occupancy rate has improved from 30-32% in April 2021 to 68-70% in November 2022.
- Tourism sector is showing signs of revival, with the foreign tourist arrivals in India in Financial Year 2022-23 growing month-on-month with resumption of scheduled international flights and easing of Covid-19 regulations.
- As of November 2022, India is the 6th largest foreign exchange reserve in the world.