Prime Minister Narendra Modi on Monday said the Economic Survey highlights the prevailing strengths of the economy and identifies areas for further growth and progress as “we move towards building a Viksit Bharat”.

Finance Minister Nirmala Sitharaman on Monday presented the Economic Survey 2023-24, along with the statistical appendix in the Lok Sabha.

The Economic Survey is an annual document presented by the government ahead of the Union Budget to review the state of the economy. The document also provides an overview of the short-to-medium-term prospects of the economy.

In a post on X, Prime Minister Modi said, “The Economic Survey highlights the prevailing strengths of our economy and also showcases the outcomes of the various reforms our Government has brought.”

“It also identifies areas for further growth and progress as we move towards building a Viksit Bharat,” the prime minister said.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

Image for representational purposes only.
| Photo Credit: PTI

Equity benchmark indices Sensex and Nifty ended lower on July 22, dragged down by heavy selling pressure in Reliance Industries and Kotak Mahindra Bank ahead of the Budget.

Besides, a weak trend in global equity markets also hit investors sentiment, traders said.

Falling for the second day in a row, the 30-share BSE Sensex fell 102.57 points or 0.13% to settle at 80,502.08. During the session, it tanked 504 points or 0.62% to 80,100.65.

The NSE Nifty dipped 21.65 points or 0.09% to 24,509.25. During the day, it dropped 168.6 points or 0.68% to 24,362.30.

Reliance Industries declined over 3% among the Sensex pack after the company reported a 5% drop in its June quarter net profit.

Kotak Mahindra Bank also fell more than 3% after its June quarter earnings failed to cheer investors.

ITC, State Bank of India, HCL Technologies and IndusInd Bank were the other big laggards.

NTPC, UltraTech Cement, HDFC Bank and Mahindra & Mahindra were among the gainers.

HDFC Bank climbed over 2% after the company’s consolidated net profit grew 33.17% to ₹16,474.85 crore in the June 2024 quarter.

In Asian markets, Seoul, Tokyo and Shanghai settled lower, while Hong Kong ended in the positive territory.

European markets were trading higher in the mid-session deals. U.S. markets ended lower in overnight trade on July 19

According to the Economic Survey, 2023-24 tabled in Parliament on July 22, capital markets are becoming more prominent in India’s growth story, with an expanding share in capital formation and investment landscape on the back of technology, innovation and digitisation.

Further, Indian markets are resilient to global geo-political and economic shocks, it added.

“Despite heightened geo-political risks, rising interest rates and volatile commodity prices, Indian capital markets have been one of the best performing among emerging markets in FY24,” the Economic Survey said.

Meanwhile, global oil benchmark Brent crude dipped 0.08 per cent to $82.53 a barrel.

Foreign Institutional Investors (FIIs) bought equities worth ₹1,506.12 crore on July 19, according to exchange data.

The BSE benchmark hit its new all-time high of 81,587.76 in the initial trade on July 19 but failed to carry forward the winning momentum and tanked 738.81 points or 0.9% to settle below the 81,000 mark at 80,604.65.

Nifty tumbled 269.95 points or 1.09% and ended at 24,530.90 after hitting its fresh record peak of 24,854.80 during the opening bell on July 19.

India faces two choices to benefit from ‘China plus one’ strategy and that is either to integrate into China’s supply chain or promote FDI from China. File.
| Photo Credit: AP

Increased foreign direct investment inflows from China can help increase India’s global supply chain participation and push exports, says the Economic Survey.

The Survey said as India looks to deepen its involvement in global value chains (GVCs), it needs to look at the successes and strategies of East Asian economies.

 Economic Survey 2023-24 updates

These economies have typically pursued two main strategies – reducing trade costs and facilitating foreign investment.

It added that India faces two choices to benefit from ‘China plus one’ strategy and that is either to integrate into China’s supply chain or promote FDI from China.

“Among these choices, focusing on FDI from China seems more promising for boosting India’s exports to the US, similar to how East Asian economies did in the past,” the Survey, tabled in Parliament by Nirmala Sitharaman on Monday, said.

Moreover, choosing FDI as a strategy to benefit from the China plus one approach appears more advantageous than relying on trade.

“This is because China is India’s top import partner, and the trade deficit with China has been growing. As the US and Europe shift their immediate sourcing away from China, it is more effective to have Chinese companies invest in India and then export the products to these markets rather than importing from China, adding minimal value, and then re-exporting them,” it added.

The survey explained how increased FDI inflows from China can help in increasing India’s global supply chain participation along with a push to exports.

At present, FDI from China in any sector needs government approval.

China stands at 22nd position with only 0.37% share ($2.5 billion) in total FDI equity inflow reported in India during April 2000 to March 2024.

New Delhi:

Finance Minister Nirmala Sitharaman will table the Economic Survey in Parliament on July 22, a day ahead of the Union Budget, which will be a report card on the economy and also the growth outlook ahead.

The survey gives a detailed account of the state of the economy, prospects and policy challenges. It is prepared by a team led by chief economic adviser V Anantha Nageswaran.

The Economic Survey provides statistical information and analysis on various sectors of the economy as well as data on employment, GDP growth, inflation, and the budget deficit.

India has retained its tag as the fastest-growing economy, and the economic survey will be presented at a time when the IMF has just raised its economic growth forecast for the country for FY25 to 7 per cent from 6.8 per cent projected in April.

“The forecast for growth in India has also been revised upward, to 7 per cent, this year, with the change reflecting carryover from upward revisions to growth in 2023 and improved prospects for private consumption, particularly in rural areas,” the IMF said.

In June, the Reserve Bank of India revised the growth forecast to 7.2 from 7 per cent.

The RBI sees India moving ahead towards an 8 per cent GDP growth trajectory on a sustained basis, driven by structural economic reforms such as GST.

“If you look at the average growth India recorded over the three years, the average comes to 8.3 per cent and the current year we have given a projection of 7.2 per cent growth,” RBI Governor Shaktikanta Das said.

He also said the Indian economy in the last financial year 2023-24 contributed to 18.5 per cent of the global growth which is a major achievement as it was much lower 7 or 8 years ago. The IMF has projected that this growth will go up, he added.
 

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)