Economic Survey Presented in Lok Sabha: Key Insights and Projections

Agricultural Sector Performance

The Economic Survey presented in the Lok Sabha highlighted an average growth rate of 4.18% in the agricultural sector over the past five years. The survey emphasized the need for increased efforts to expand the area under pulse cultivation to meet the rising demand.

Impact of Free Trade Agreements

The survey noted that free trade agreements are expected to boost India's share in the global export market. The positive impact of the Minimum Support Price (MSP) decisions will be more pronounced on crops like rice and wheat.

Inflation Trends

Core services inflation has dropped to its lowest level in nine years, while core goods inflation has declined to a four-year low. However, adverse weather conditions have exerted pressure on food prices.

Edible Oil Mission and Storage Facilities

Discussions are underway to expand the scope of the National Mission on Edible Oils to ensure greater self-sufficiency. The survey also stressed the need for better storage facilities for seasonal vegetables to stabilize prices.

Positive Impact of MSP

The survey indicated that the MSP has had a positive impact on the retail prices of all crops, benefiting farmers and consumers alike.

Current Account Deficit and Growth Expectations

The Current Account Deficit (CAD) for FY24 stood at 0.7% of GDP, with expectations of better growth in FY25. The survey projected that normal rainfall would enhance the performance of the farm sector and improve rural demand.

Global Uncertainties

Global uncertainties have impacted export demand and could lead to higher import costs. To mitigate these challenges, the survey suggested that India should aim to become a global manufacturing hub to reduce the trade deficit.

Industrialization and Economic Reforms

Deregulation measures are expected to promote industrialization and attract more investments. The survey called for continued reforms to enhance the overall economic growth and stability.

Overall, the Economic Survey painted a picture of cautious optimism, highlighting both the challenges and opportunities facing the Indian economy in the coming years.