PM Modi hails Economic Survey, says it showcases ‘prevailing strengths of our economy’

Prime Minister Narendra Modi hailed the Economic Survey on Monday and said that it highlighted the ‘prevailing strengths’ of the Indian economy. The remarks come less than a day before Finance Minister Nirmala Sitharaman is set to present the Budget in Lok Sabha.

“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,” Modi wrote on X.

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.

The report authored by the office of chief economic adviser V Anantha Nageswaran projected GDP to grow at 6.5% to 7% in 2024-25 — down from a high of 8.2% in the preceding financial year. It also suggested that the Reserve Bank of India (RBI) should stop looking at food inflation in deciding interest rates and the government should explore giving coupons or direct cash transfer to poor to deal with higher food prices.

The key economic document also cautioned that escalation of geopolitical conflicts may have bearing on growth prospects. It however noted that domestic growth drivers had supported economic growth in FY24 despite uncertain global economic performance.

"...the Survey conservatively projects a real GDP growth of 6.5-7 per cent, with risks evenly balanced, cognizant of the fact that the market expectations are on the higher side," the pre-Budget document said.

A normal rainfall forecast by the India Meteorological Department and the satisfactory spread of the southwest monsoon thus far are likely to improve agriculture sector performance and support the revival of rural demand.

(With inputs from agencies)