Women counting money at a garment sewing machine unit.
| Photo Credit: Getty Images/iStockphoto

Observing that India is transitioning from women’s development to women-led development, the Chief Economic Advisor on July 22 said there has been a 218.8% increase in budgetary allocation for schemes for the welfare and empowerment of women even as it acknowledged that women in India face the “’motherhood penalty” with a drop in female labour force participation rate around childbearing years.

“The share of the Gender Budget in the total Union Budget has increased to 6.5% in Financial Year 2025, the highest since the introduction of Gender Budgeting Scheme in Financial Year 2006,” the Chief Economic Advisor (CEA) said in the Economic Survey, which was tabled in Parliament.

Economic Survey 2023-24 highlights

This shows that India is shifting from women’s development to women-led development. He also underscored the government’s commitment towards ensuring employment opportunities for women in various fields.

The survey said that skilling schemes have put a dedicated emphasis on covering women, and the number of women trained under Pradhan Mantri Kaushal Vikas Yojana (PMKVY) has increased from 42.7% in financial year 2016 to 52.3% in financial year 2024. Under the Jan Shikshan Sansthan (JSS) scheme, women constitute about 82% of the total beneficiaries and in institutes like ITIs and National Skill Training Institutes (NSTIs), the participation of women has gone up from 9.8% in FY16 to 13.3% in FY24.

With rural India propelling the trend, the survey observed that the female Labour Force Participation Rate (LFPR) rose to 37% in 2022-2023 from 23.3% in 2017-2018. The Pradhan Mantri Jan Dhan Yojana (PMJDY) has facilitated the opening of 52.3 crore bank accounts, of which 55.6% account holders are women, as of May 2024.

Read the full document of Economic Survey 2023-24

Delving on the crucial aspect of care economy, the survey estimated that direct public investment equivalent to 2% of the GDP has the potential to generate 11 million jobs in the sector, nearly 70% of which will go to women.

It flagged international models of Australia, Argentina, Brazil, and the U.S. in this sector to get insights for India.

“The economic value of developing a care sector is two-fold — increasing female labour force participation rate (FLFPR) and promoting a promising sector for output and job creation. According to International Labour Organisation (2018), the care sector is one of the fastest-growing sectors globally, and investments in the care services sector are estimated to generate 475 million jobs globally by 2030,” it said.

A pharmacist arranges stocked medicines at a Jan Aushadhi Pharmacy in Tiruchi, Tamil Nadu.
| Photo Credit: M. SRINATH

The Economic Survey 2023-2024 highlights that the latest National Health Accounts (NHA) estimates show an increase in the share of Government Health Expenditure (GHE) in the total GDP as well as the share of GHE in Total Health Expenditure (THE).

The data compiled in the latest NHA estimates are for financial year 2019-20 (FY20).

The Survey tabled by Union Finance Minister Nirmala Sitharaman in Parliament on Monday points out that over the years, the share of primary healthcare expenditure has increased from 51.3% of GHE in FY15 to 55.9% of GHE in FY20. The share of primary and secondary care in GHE rose from 73.2% in FY15 to 85.5% in FY20.

On the other hand, the share of primary and secondary care in private health expenditure has declined from 83% to 73.7% during the same period, which the Survey attributes to rising tertiary disease burden and utilisation of government facilities for primary healthcare.

The Survey also notes a significant increase in the social security expenditure on health, which grew from 5.7% in FY15 to 9.3% in FY20. There was also a decline in out-of-pocket expenditure (OOPE) as a percentage of THE between FY15 and FY20.

Consequent to these developments, the Survey underscores improvements in key health indicators such as Infant Mortality Rate (IMR), declining from 39 per 1,000 live births in 2013 to 28 per 1,000 live births in 2020, and Maternal Mortality Rate (MMR) declining from 167 per lakh live births in 2014 to 97 per lakh live births in 2020.

It has further said that the Union government is working towards ensuring sound health and well-being of people of all ages through preventive and promotive healthcare. It listed out various schemes including Ayushman Bharat Pradhan Mantri Jan Aarogya Yojana (AB-PMJAY), PM Jan Aushadhi Kendras, AMRIT (Affordable Medicines and Reliable Implants for Treatment), etc. being brought in to help the public.

A Loco Pilot uses the Kavach in South Central Railway in which the brakes were applied automatically. File
| Photo Credit: Nagara Gopal

Safety issues are paramount after a spate of railway accidents, however, the Economic Survey 2023-24 released on July 22 indicates limited progress on safety-related works such as deployment of automatic train protection system Kavach and overhaul of signalling systems at all stations. 

Kavach, an automatic train protection (ATP) system, has been deployed on 1,465 route km in the South Central Railway, the Survey states. This is just 2.14% of the total railway network of 68,426 route km and 7,349 railway stations. 

So far, out of 17 operational railway zones in India, eight zones have become free from mechanical signalling, according to the Survey.  

Capex deployment

The Economic Survey also states that the capex deployment in railways has increased by 77% over past five years, ranging to ₹2.62 lakh crore in FY24 with significant investments in construction of new lines, gauge conversion and doubling.

However, till FY23, 2,981 railway stations had made the switch from mechanical signalling to electronic interlocking system, only up to 40% of India’s 7,325 railway stations. 

The Survey points out that in FY24, 443 additional stations made the switch, taking up the total number of stations which now have electronic interlocking systems up to 46%. 

Electronic interlocking (EI) systems were introduced in India 12 years ago. “Until March 31, 2024, EI has been provided at 3,424 stations,” the Survey says.   

Yet another signalling intervention Automatic Block Signalling (ABS), is a system that controls the movement of trains between the blocks using automatic signals, which helps trains operating in same direction safely without any risk of collision on the rear-end.

The Economic Survey points out that while the ABS is a proven low-cost signalling solution, it has been provided on 582 route km during FY24. Until March 31, 2024 since the time it was commissioned, the ABS has been commissioned on 4,431 route km on high-density network routes. This comprises 6.47% coverage across the length of Indian Railways. 

Image for representational purposes only.
| Photo Credit: The Hindu

India has transitioned from being an arms importer and found a place in the list of top 25 arms exporter nations, the Economic Survey revealed on Monday.

Between 2015 and 2019, India held the distinction of being the world’s second-largest arms importer, but the narrative has changed now. Defence production has grown substantially in the country, from ₹74,054 crore in the financial year 2016-17 to ₹108,684 crore in 2022-23, boosting defence exports.

“The defence industry, including the private sector and Defence Public Sector Undertakings (DPSUs), has made tremendous efforts to achieve the highest-ever defence exports,” the survey pointed out.

In charts: Key takeaways from Economic Survey 2023-24

In addition, there has been a rise in the number of export authorisations issued to the defence exporters, it added. “From 1,414 export authorisations in FY23, the number has increased to 1,507 in FY24.”

About 100 domestic companies are exporting a wide range of defence products and equipment such as the Dornier-228 aircraft, artillery guns, BrahMos missiles, Pinaka rockets and launchers, radars, simulators, and armoured vehicles, the survey noted.

Stating that the government has taken several policy initiatives over the past 10 years to boost defence exports, the survey said export procedures have been simplified and made industry-friendly, with end-to-end online export authorisation curtailing delays and facilitating ease of doing business.

“Further, the Aatmanirbhar Bharat initiatives have helped the country by encouraging indigenous design, development and manufacture of defence equipment, thereby reducing dependency on imports in the long run,” it added.

While defence exports have gone up, India continued to remain the world’s top arms importer in the period 2019-23, with imports going up by 4.7% compared with the period 2014-18, according to a report in March from the Swedish think tank Stockholm International Peace Research Institute (SIPRI). India came back to the top slot in arms imports after briefly ceding space to Saudi Arabia in the past.

In the interim Budget presented in February, the total allocation for the Defence Ministry was ₹6.2 lakh crore, of which the capital allocation, for new procurements, was ₹1.72 lakh crore, 5.78% higher than the Budget Estimates of the previous year.

Note of caution

Earlier this week, sounding a note of caution on the push on Aatmanirbharta, or self-reliance, Vice-Chief of the Indian Air Force (IAF) Air Marshal A.P. Singh said that Aatmanirbharta cannot be at the cost of nation’s defence. “Nation’s defence comes first and foremost,” he said, while stating that when it comes to national defence, “there will be compulsions to deviate from their path” in case they do not get the things they need or the kind of systems and weaponry that is required to survive in today’s world.

Talking of the indigenous technological development under way he said the “rate at which we are getting our equipment at the moment is too low”.

Photo used for representation purpose only.
| Photo Credit: Getty Images/iStock

The Economic Survey of India 2023-24 released on July 22 stresses that implementing the New Education Policy to achieve learning outcomes and syncing that with skilling outcomes will boost the job prospects of India’s youth. V Anantha Nageswaran, the chief economic advisor, said at the press meet marking the release of the economic survey that only 51% of India’s graduates are employable. The survey notes that the median age of India’s workforce is 28 and syncing learning outcomes with skilling outcomes is the best way to leverage that.

“The education sector is bustling with the across-the-board transformation led by the NEP 2020, which is expected to yield Foundational Literacy And Numeracy for every child passing the third standard in the near future. That said, improving learning outcomes and undoing the COVID-induced learning loss is more urgent than ever,” says the report. The survey notes that skilling is falsely taken as applying to dropouts and those who did not perform well in academics but that perception needs to change to boost the employability of youth.

The economic survey has flagged a concern that various reports have been highlighting the gap between class standard and learning level, which has widened since COVID. For instance, in comparison to the National Achievement Survey (NAS) 2017, student performance underwent a significant drop in NAS 2021. Class 10 scores decreased by 13.4% in Mathematics, 18.6% in Science, and 9.1% in Social Science, while Class 3 scores decreased by 3.9% in Language, 4.7% in Mathematics, and 4. 4% in Environmental Studies.

Regarding central government expenditure on education, the survey notes that in FY 24 the total expenditure was Rs 60,000 crore lower than budget estimates. Rural development and education expenditures took the brunt. Overall, the survey notes that the total central expenditure has been hovering at 2.8% over the years and last year saw a slight dip.

Among the positives the survey flags are the improvement in school infrastructure. For instance, in 2022-23 97% of the schools had toilets compared to 88% in 2012-13. Only 36% of the schools had handwash facility while now 94% had it. A little over half the schools had electricity in 2012-13, while ten years later nearly 92% had it. In 2022-23, half the schools in India had computers and internet facilities.

The survey recalls a warning by Vivek Murthy, the U.S. Surgeon General, that social media was like tobacco and that laws were needed to shield the young from online harassment, abuse, and exploitation. A study by India’s National Commission for Protection of Child Rights showed that 23.8 per cent of children use smartphones while they are in bed, and 37.2 per cent of children experience reduced levels of concentration due to smartphone use.

The survey notes that as of July 2024, 2037 higher education institutions have onboarded the Academic Bank of Credits and 30.13 crore APAAR IDs have been created for students of higher education, school education and skill institutes. The ABC seeks to boost student mobility across institutions.

The survey has discussed in some depth the International Financial Services Authority and the GIFT city in Gujarat. The IFSC has been designated as a non-resident zone under the Foreign Exchange Management Act, which means that entities set up in the IFSC are outside the capital control restrictions and, therefore, can conduct business in any of the eleven notified foreign currencies. The FY23 budget had talked about foreign universities setting up their campuses in ISFCs. In FY2024, Deakin University from Australia became the first foreign university to be granted final registration for their International Branch Campus in GIFT IFSC under IFSCA. The University of Wollongong from Australia became the second foreign university to receive in-principal approval for their International Branch Campus in GIFT IFSC. The survey says such initiatives will help to achieved a more educated and skilled India.

The shift to renewable energy could lead to new vulnerabilities in the supply chains for solar panels and critical minerals, the Economic Survey 2023-24 said. File (representational image)
| Photo Credit: K. Murali Kumar

India’s path to sustainable development is fraught with challenges, as the country grapples with the twin imperatives of meeting burgeoning energy demands and reducing carbon emissions, the Economic Survey 2023-24 revealed on July 22.

Also Read:Economic Survey 2023-24 LIVE updates

Tabled in the Parliament, the Survey underscores the complexities of India’s green transition, emphasizing the need for a diversified energy portfolio to achieve ambitious growth targets while adhering to climate commitments.

“Balancing development needs with a low-carbon pathway is a tightrope, especially when financed predominantly through domestic resources,” the Survey noted, highlighting the financial strain of pursuing cleaner energy alternatives.

Click here to download Economic Survey 2023-24

The document stressed the critical role of non-fossil fuel sources in meeting India’s Nationally Determined Contributions (NDCs) and Net Zero goals. However, it also pointed out the challenges associated with renewable energy, including intermittency issues, waste management concerns for nuclear and solar technologies, and the potential impact of biofuel production on food security.

Acknowledging the importance of energy security, the survey advocated for a multi-pronged approach. It suggested diversification of energy sources, including renewables, nuclear, and biofuels; continued reliance on thermal power, particularly coal, to provide baseload support for renewable deployment; promotion of clean coal technologies like gasification and carbon capture, and enhanced international cooperation in R&D for emerging green technologies.

The Survey cautioned against over-reliance on imports, noting that while India’s dependence on petroleum imports is well-known, the shift to renewable energy could lead to new vulnerabilities in the supply chains for solar panels and critical minerals.

On a positive note, the report highlighted India’s significant progress in its mission-mode approach to addressing climate change. As of May 31, 2024, the share of non-fossil sources in installed electricity generation capacity has reached 45.4%, putting India on track to meet its updated NDC target of 50% by 2030.

The Survey called for a “more balanced approach” to climate change, suggesting policymakers focus on “nearer-term policy goals of improving human welfare” rather than being “excessively preoccupied” with long-term global climate management.

While acknowledging India’s achievements, the survey emphasized the need for financial support from developed countries.

With financing needs estimated at $2.5 trillion (at 2014-15 prices) for meeting NDC targets till 2030, access to finance and technology at reasonable costs is crucial to ease the resource constraints.

The agriculture insurance sector is likely to register growth from 2024 onwards. File
| Photo Credit: K.V.S. Giri

The agriculture insurance sector is likely to register growth from 2024 onwards, with an average real premium growth of 2.5% over the medium term, according to the Economic Survey 2023-24.

Also Read:Economic Survey 2023-24 LIVE updates

The survey, tabled in Parliament on July 22, noted that agriculture insurance, accounting for about 12% of the non-life insurance market, witnessed flat growth in FY23 due to a sharp decline in premium rates in the Kharif cropping season.

“However, this decline was more than offset by increased insured land area and farmer enrolments during the season,” it added.

Click here to download Economic Survey 2023-24

“Agriculture premiums will likely rise from 2024 onwards, with an average real premium growth of 2.5% cent over the medium term, supported by improvements in insurance infrastructure such as mobile applications and remote sensing for crop loss monitoring,” the survey said.

To address current concerns around crop insurance, the government has launched various technological initiatives. These include the YES-Tech Manual, WINDS portal, and enrolment app AIDE/Sahayak to assess crop damage via satellite-based advanced technologies.

The survey also highlighted door-to-door enrolment initiatives aimed at making crop insurance more accessible to farmers.

These measures are expected to enhance the efficiency of crop damage assessment and improve the overall accessibility of agricultural insurance in the country.

Currently, the government is implementing Pradhan Mantri Fasal Bima Yojana and the Weather Based Crop Insurance Scheme.

The concept of green steel promotes the production of steel using green energy sources and minimizing the usage of fossil fuels. File (representational image)

Green steel will play an important role in reshaping the future of the industry as the world moves towards a low-carbon economy, the Economic Survey for 2023-24 said.

The concept of green steel promotes the production of steel using green energy sources and minimizing the usage of fossil fuels.

Also Read:Economic Survey 2023-24 LIVE updates

“As the world moves towards a low-carbon economy, green steel is poised to play a pivotal role in reshaping the future of the steel industry,” said the Survey tabled in Parliament on July 22.

“India’s steel sector accounts for 12% of India’s greenhouse gas emissions with an emission intensity of 2.5 tonnes of CO2 per tonne of crude steel compared to the global average of 1.9 tonnes of CO2 per tonne of crude steel,” it said.

The Survey also said, “India remained a net importer of steel during the first, second and third quarters of FY24 because of price differentials between international and domestic prices of finished steel.”

“Low prices in the international markets led to reduced profit margins for exports and made imports more affordable, affecting the trade balance in the steel sector,” it said.

Click here to download Economic Survey 2023-24

“The import dependence on coking coal, an essential raw material for steel production also went up from 56.1 MT in FY23 to 58.1 MT in FY24,” the Survey said.

The Survey also highlighted that many technologies required for global net zero are commercially unavailable, such as hydrogen-fuelled steel/cement, steel and aluminium production with (Carbon Capture, Utilization, and Storage) CCUS, etc.

“There is a need to enhance international cooperation in R&D, especially in the domains of distributed RE, offshore wind, geothermal, tidal energy, biofuels, compressed biogas, green hydrogen, energy storage, electrolysers, and nuclear power [including small modular reactors SMR],” it said.

Only 4.4% of India’s young workforce is formally skilled, said the Economic Survey 2023-24. File
| Photo Credit: M. Moorthy

With only 4.4% of India’s young workforce formally skilled, linking skill development with production Linked Incentive (PLI) and employment-linked incentive schemes in high-growth potential sectors like toy, apparel, tourism, logistics and textiles would aid upgrading of skills as production moves up the value chain, the Economic Survey said on July 22.

The Survey for 2023-24 tabled in the Parliament stated, “in order to reap the demographic advantage, it is necessary to equip the workforce with employable skills and knowledge that meet the requirements of the globalised labour market”.

Currently, the PLI scheme is available for 14 sectors. Industry bodies have been demanding introduction of an employment-linked incentive scheme to promote job creation in the economy, in the face of a growing young population amidst concerns about jobless growth.

Also Read:Economic Survey 2023-24 LIVE updates

According to the Survey, to maximise the outcomes from skilling initiatives, convergence, and utilisation of synergies with other employment-centric programmes would mutually benefit the two verticals.

“Measures are being taken by government to translate India’s demographic dividend into a productivity dividend by enabling job and entrepreneurial opportunities that are in sync with the aspirations and abilities of India’s youth. It is partnering with the industry to enhance skilling with employability,” said the Survey.

Click here to download Economic Survey 2023-24

It further stated that “linking skill development with PLI scheme and employment-linked incentive schemes in high-growth potential sectors like toy, apparel, tourism, logistics, textiles, leather sector etc. would aid upgrading of skills as production moves up the value chain”.

Image used for representation purpose only.

According to the Economic Survey 2023-24, 65% of India’s fast-growing population is under the age of 35, and many lack the skills needed by a modern economy. It also stated that about 51.25% of the country’s youth is deemed employable, according to estimates. This is to say that about one in two graduates are not yet readily employable straight out of college. However, it must be noted that the percentage has improved from around 34% to 51.3% in the last decade. 

Also Read: Economic Survey 2023-24 LIVE updates: India’s GDP to grow at 6.5-7% in current FY

The 2022-23 Annual Report of the Ministry of Skill Development & Entrepreneurship (MSDE) notes, “as per National Single SignOn (NSSO), 2011-12 (68th round) report on Status of Education and Vocational Training in India, among persons of age 15-59 years, about 2.2% reported to have received formal vocational training and 8.6% reported to have received non-formal vocational training”.

The same report enumerates the challenges in the skilling and entrepreneurship landscape in the country, such as a low public perception on skilling; an alternative for those who have not completed their formal academic system, unmoderated skill development programmes of the Central Government, multiplicity in assessment and certification systems that cause confusion among the employers, understaffed or untrained faculty, mismatch between demand and supply, limited mobility between skill and higher education/vocational programmes.

Also Read: Economic Survey 2023-24: India’s growth back to pre-COVID trends, 7%-plus growth possible in medium term

Other challenges include a low coverage of apprenticeship programmes, insufficient skill curriculum, declining women labour force participation, pre-dominant non-farm, unorganised sector employment with low productivity but no premium for skilling, non-inclusion of entrepreneurship in formal education system, lack of mentorship and adequate access to finance for start-ups, inadequate motivation to innovation driven entrepreneurship and a lack of assured wage premium for skilled people.